July 12, 2006	Wednesday	Jumadi-ul-Sani 15, 1427

LONDON, July 11: Oil prices rose briefly above $74 on Tuesday on supply concerns fuelled by determination by Iran to complete its nuclear fuel programme despite deep opposition by the West, dealers said.

Analysts warn that Iran, the world's fourth-biggest oil producer, could disrupt its crude exports if hit by economic sanctions over its controversial nuclear project.

New York's main contract, light sweet crude for delivery in August, added 39 cents to $74 per barrel in pit trading after striking as high as $74.32.Brent North Sea crude for August delivery gained 52 cents to $73.41 per barrel in electronic trading after an intra-day peak of $74.02.

Iran President Mahmoud Ahmadinejad insisted on Tuesday that his country was determined to complete its nuclear fuel cycle work and would not back down “one iota” in the face of international pressure.

The comments came as Iran's top nuclear negotiator Ali Larijani was in Brussels for fresh talks with EU foreign policy chief Javier Solana -- who six weeks ago presented Iran with an international offer of incentives if it agreed to freeze sensitive fuel cycle work.

“By refusing the European Union's proposals, Iran's president has sent a clear hawkish signal to the market,” Societe Generale analyst Alexandre Kervinio said.

Larijani, meanwhile warned on Tuesday that a “long road” remains ahead before Tehran's atomic standoff with the West can be solved, after his latest talks with European officials.

Last Friday the New York contract had hit a historic $75.78 and Brent struck a record $75.09 owing to heightened geopolitical tensions over Iran and North Korea.

Crude futures had shed around $3 late last Friday and on Monday as many traders chose to bank profits.

World powers have been pushing Iran to respond positively to the EU offer -- economic, trade and political incentives in exchange for a suspension of uranium enrichment.

The West, in particular the United States, wants Tehran to respond before a meeting of Group of Eight leaders in Saint Petersburg beginning on Saturday.

Easing concerns over the North Korean missile crisis meant that crude was trading at lower levels.—AFP