Oil prices rose sharply on Tuesday (GMT) as the US government continued to push for a possible war against Iraq and dealers speculated Turkey would ultimately agree to allow an attack to be launched from its territory

US light crude rose US$1.00 to US$36.88 a barrel. In London, Brent crude was 87 cents higher at US$33.35. "It's the biggest obstacle that the US has hit yet," said Rob Laughlin of GNI-Man Financial of the Turkish parliament's weekend vote against allowing US troops to use Turkish bases. But he predicted the decision could be overturned. Turkish Foreign Minister Yasar Yakis indicated on Tuesday the government was considering a new parliamentary motion approving deployment of US troops, though he gave no date. Ankara has said Washington has pledged up to US$30 billion in grants and loan guarantees in return for its support. US officials and defence experts said that unless Turkey allowed the US to launch an attack from its bases any war could be pushed back until late March or early April. There was also concern that Kurds in northern Iraq might try to seize oilfields or that Iraq's military might destroy the fields in the absence of US forces.