Although worries over global growth reignited as Europe is still seen falling into recession while China’s manufacturing activity is still in contraction and the US housing markets gave mixed signals, crude is firmly trading around the $106.00 level supported by Iran’s issue and the supply related worries.

In China the manufacturing activity rose in February to a four-month-high at 49.7 from 48.8 in January, yet it remains in contraction for the fourth straight month as export orders dropped sharply mainly from Europe, increasing pressures on the central bank to ease its monetary policy even more to support growth.

Meanwhile there are doubts that the Greek deal will end the eurozone’s debt crisis, and today’s disappointing manufacturing and services data from Germany and EU helped revive fears that the economy could fall into recession, yet investors ignored the evidence of economic weakness due to Iran.

“Iran is still the main issue, it's keeping prices very well supported”, said analyst Andy Sommer. The West continues to suspect Tehran of building an atomic weapon, which determined Europe to impose an embargo on Iranian impost starting July 1, while China, India and Japan will start this year cutting at least 10% oil imports from Iran .

But Iran continues to deny those allegations, and in respond to the sanctions it cut its oil exports to Britain and France last week. Meanwhile the UN nuclear inspectors ended their latest mission to Iran where talks on the atomic weapons research failed.

On the other hand Russian warned Israel not to attack Iran, as such an action would have “catastrophic consequences”. Although investors sought today the safe haven US dollar which trades around 79.30 as of this writing, crude is still firmly trading around the $105.95, while Brent is around $121.95.