April 23 Reuters Oil prices gained on Tuesday after stronger economic data out of Europe, as investors also weighed the potential fallout from any fresh U.S. sanctions on Iran39;s oil exports with tensions remaining high in the Middle East.

Global benchmark Brent crude oil futures traded 80 cents or 0.9 higher at 87.80 a barrel by 0847 GMT, while U.S. West Texas Intermediate crude futures also gained 71 cents or 0.9 to 82.61 a barrel.

Data showed that overall business activity in the eurozone expanded at its fastest pace in nearly a year this month, led by a buoyant recovery in the bloc39;s dominant service industry.

Britain39;s bluechip FTSE 100 index hit a record high on Tuesday.

Meanwhile, EU foreign ministers agreed in principle on Monday to expand sanctions on Iran following Tehran39;s missile and drone attack on Israel this month.

The U.S. Senate is set to begin considering a foreign aid package that includes sanctions on Iran39;s oil exports that target ships, ports, and refineries that process Iranian oil.

The geopolitical backdrop is still very fraught with so many risks at the moment, so clearly we39;re going to see a lot of volatility until there39;s a lot more clarity around it, ANZ analysts said in a podcast.

Iran and Israel going beyond gestural sovereign attacks … risks the ire of a U.S. that right now has its own political reasons for letting Iranian oil get to water, said John Evans at oil broker PVM.

Given an incident free week from Israel…