Oil rises to $104 a barrel

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Oil rises to $104 a barrel

The price of oil flirted with two-and-a-half-year highs amid fresh concerns

about tensions in the Middle East.

Brent crude rose above $104 a barrel after Avigdor Lieberman, the Israeli

foreign minister, said two Iranian warships planned to sail through the Suez

canal en route to Syria.

Mr Lieberman called the move the latest " provocation " by Iran, which Israel sees

a major threat due to the OPEC nation's nuclear arms programme.

In January, unrest in Egypt helped push Brent over $100 a barrel. The latest

move by Iran comes five days after Egyptian president Hosni Mubarak stepped down

and Israeli leaders have expressed concerns that Iran may exploit the period of

transition.

Meanwhile, unrest in Libya added to fears that the kind of disturbances that

toppled the presidents of Egypt and Tunisia could spread to other oil-producing

Middle East nations.

" Troubles in the Middle East are back on the agenda, protests in Bahrain and

Saudi have drummed up political tension, " said Rob Montefusco, an oil trader at

Sucden Financial.