Oil rises above $99 on Iran warnings

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U.S. light crude for April delivery rose 79 cents to $99.60 a barrel by 12:43 a.m., adding to Friday's 58 cents gain.

London Brent crude rose 66 cents to $97.67.

"Prices are influenced by fresh geopolitical concerns as Turkish troops crossed into northern Iraq in an offensive against Kurd militants," David Moore, a resource analyst at the Commonwealth Bank of Australia, said in a note to clients.

"There is also a possibility that tensions surrounding Iran's nuclear program may intensify."

Oil exporter Iran warned Western countries on Sunday that they would be the ones to suffer if they pass a new U.N. sanctions resolution on the Islamic Republic, raising spectre that the world's fourth-largest oil exporter would cut crude exports.

"Some Western powers are...choosing a wrong path and passing resolutions against Iran will be costly for them," Javad Vaeedi, deputy chief nuclear negotiator, was quoted by Iran's official news agency IRNA as saying. Vaeedi did not elaborate.

The International Atomic Energy Agency said in a report on Friday that Iran has shown new openness about nuclear advances, but not enough to prove the programme is not geared to bomb making.

The United States, Britain and France have said that they hope the United Nations Security Council will vote on a third round of sanctions.

Oil's gain was also supported by Turkey's major attack on Kurdish PKK guerrillas in northern Iraq, which has raised fears that the offensive could further destabilise Iraq and disrupt oil supplies.

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