NYMEX-Crude rises as Iran renews threat to block Hormuz

U.S. crude rose 21 cents to $99.18 a barrel by 0012 GMT, after settling at $98.95, below the front-month 50-day moving average of $99.19. Brent crude fell 55 cents to settle at $110.03 a barrel.

FUNDAMENTALS

* Iranian politicians said on Tuesday they expected the European Union to backtrack on its oil embargo and repeated a threat to close the Strait of Hormuz.

* U.S. crude oil inventories showed a steep build last week as imports jumped, according to weekly inventory data from the American Petroleum Institute. Crude stockpiles rose 7.3 million barrels in the week to Jan. 20, well over analysts' expectations for a build of 800,000 barrels.

* Europe's debt crisis could tip the world economy into recession and a bigger firewall is urgently needed to keep the damage from spreading, the International Monetary Fund said.

* Angela Merkel's conservative allies warned on Tuesday against committing additional German funds to euro zone bailout schemes, underscoring how difficult it will be for the chancellor to meet international demands to boost the bloc's defences.

* The U.S. economy appears to have shaken off the gloom from Europe's debt crisis in the fourth quarter, pushing ahead at what was likely its fastest pace in nearly two years.

* U.S. retail gasoline demand rose 1.3 percent last week from the previous week as the holiday season ended and drivers returned in force to the roads, MasterCard said.

MARKETS NEWS

* The yen hovered at one-month lows against the dollar in Asia on Wednesday, having suffered its biggest one-day fall since October's intervention after a break of technical levels forced sellers into the market.

* U.S. stocks edged lower on Tuesday, ending a five-day rally for the S&P 500, as talks to resolve Greece's debt crisis hit a snag and earnings from a number of blue chips disappointed investors.

DATA/EVENTS

* The following data is expected on Wednesday:

- 0730 India M3 Money Supply

- 0900 Germany Ifo business climate Jan

- 0900 Germany Ifo current conditions Jan

- 0900 Germany Ifo expectations Jan

- 1500 U.S. Monthly home price index Nov

- 1500 U.S. Pending home sales index Dec

- 1530 U.S. EIA petroleum stocks Weekly

- 1730 U.S. FOMC rate decision Dec

(Reporting by Manash Goswami)