Oil markets fell today after sharp gains yesterday as tensions between Iran and Western nations rise amidst positive economic data from the US and China.

Brent February crude slipped 33¢ to $111.80 barrel by 04.40 GMT while US February crude fell 33¢ to $102.63 a barrel.

Oil prices are also being affected by concerns about the global economy over continued austerity measures in Europe and the US, reports Reuters.

Meanwhile, the US dismissed Iran’s threat to take action over the US Navy moving an aircraft carrier in the Gulf.