Dealers also took profits from a recent Iran-inspired rally and tracked the stronger dollar. Brent North Sea crude for delivery in August shed 55 cents to $100.13 a barrel in London deals. New York's main contract, light sweet crude for August, declined 46 cents to stand at $87.20 in electronic deals. Traders were also looking ahead to interest rate decisions from both the Bank of England and the European Central Bank tomorrow. Oil had rallied sharply yesterday on fresh tensions over supplies from key crude producer Iran, after the Islamic republic was hit by European Union oil sanctions. Full implementation of an EU embargo on Iranian oil, which took effect on Sunday, provoked anger in Tehran, which said the measures would hurt talks with world powers over its disputed nuclear activities. Iran test-fired missiles into its central desert region yesterday, drawing a US warning that the tests were in violation of UN resolutions that ban Iran from any ballistic weapons activity. Meanwhile, some 120 lawmakers in Iran's 290-seat parliament backed a draft bill calling for the strategic Strait of Hormuz to be closed to oil tankers headed to Europe in retaliation for the EU embargo.

Dealers also took profits from a recent Iran-inspired rally and tracked the stronger dollar.

Brent North Sea crude for delivery in August shed 55 cents to $100.13 a barrel in London deals.

New York's main contract, light sweet crude for August, declined 46 cents to stand at $87.20 in electronic deals.

Traders were also looking ahead to interest rate decisions from both the Bank of England and the European Central Bank tomorrow.

Oil had rallied sharply yesterday on fresh tensions over supplies from key crude producer Iran, after the Islamic republic was hit by European Union oil sanctions. Full implementation of an EU embargo on Iranian oil, which took effect on Sunday, provoked anger in Tehran, which said the measures would hurt talks with world powers over its disputed nuclear activities.

Iran test-fired missiles into its central desert region yesterday, drawing a US warning that the tests were in violation of UN resolutions that ban Iran from any ballistic weapons activity.

Meanwhile, some 120 lawmakers in Iran's 290-seat parliament backed a draft bill calling for the strategic Strait of Hormuz to be closed to oil tankers headed to Europe in retaliation for the EU embargo.