Oil dips below $70, no quick Iran sanctions seen

Oil prices dipped below $70 today as immediate sanctions against Iran looked unlikely despite Tehran's failure to abide by UN demands to stop enriching uranium. US oil prices eased 33 cents to $69.70, while London Brent fell 49 cents to $69.69 a barrel.

The UN nuclear agency declared Iran had failed a deadline to halt nuclear work that the West fears could lead to the building of a bomb, but which Tehran insists is only for generating power. Although this raises the risk of sanctions against the world's fourth biggest crude exporter, analysts expect many Western powers to seek more negotiations first.

Iran said it will not give up its right to nuclear power.

US President George W. Bush said Iran must face consequences for failing to meet the UN Security Council deadline, but even Washington's close ally Britain has played down the prospect of any quick measures. Oil prices have eased $8 below their all-time high in July as the summer driving season winds down and after Israel and Lebanon's Hizbollah agreed to a truce. - Reuters