Oil prices swung higher in Asian trade on Thursday as the euro gained on hopes Greece’s debt swap will be successful, with tensions over Iran also supporting prices, analysts said.

New York’s main contract, light sweet crude for April delivery, rose 20 cents to $ 106.36 and Brent North Sea crude for delivery in April was up 17 cents to $ 124.29 in the afternoon.

Market cheer hinging on heightened hopes that Greece’s debt restructuring deal will go through by 2000 GMT Thursday lifted the European currency which in turn spurred on crude prices, Phillip Futures said in a report.

“Crude oil rose... as hopes that Greece’s debt restructuring will go through lifted the euro against the dollar, creating better bargains for oil buyers and fanning interest in riskier trades,” it stated.

A stronger euro means dollar-priced oil is cheaper, spurring demand and boosting prices.

Jitters over Greece’s deal were all but gone after it emerged that more than half its creditors had agreed to join in the operation, which will see them write off 107-billion euros ($ 141 billion) in debt.

Traders were also taking heed of the initial effects of Western sanctions against Iran, said IG Markets strategist Justin Harper in a report.

“Shipments of Iranian oil may have dropped about 25 per cent as the threatening talk about reducing supplies from Iran are now being replaced with action. While this risk premium exists, oil will continue to face upward pressure,” he added.

The United States yesterday demanded verifiable assurances that Iran was not building an atomic weapon after Tehran said fresh nuclear talks would fail if they were used to pressure the country.

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