* Brent up to $110.09; U.S. oil hits $100.97
* Market eyeing Iran supply risk
* Euro zone debt crisis continues to weigh on prices
* Coming Up: U.S. November non-farm payrolls, 1330 GMT (Updates prices, adds quote paras 3-4)
By Alex Lawler
LONDON, Dec 2 (Reuters) - Oil rose above $109 a barrel on Friday as some evidence of a sustained recovery in the United States and rising tension over major oil exporter Iran countered concern about the euro zone debt crisis.
The EU and U.S. tightened their sanctions against Iran on Thursday in response to mounting concern over the OPEC producer's nuclear work, increasing concern over a possible disruption to its oil flows.
"The Iranian situation is one of those things that could have a really bullish potential impact," said Tony Machacek, energy broker at Jefferies Bache in London.
"At the moment, it's a supportive factor and one of the issues that makes you think the market won't come off too far from here even if there is more economic doom and gloom all of a sudden."
Brent crude rose 50 cents to $109.49 a barrel by 1109 GMT, after settling down $1.53 at $108.99 on Thursday. U.S. crude climbed 56 cents to $100.76.
U.S. manufacturing activity rose to its highest in five months, the Institute for Supply Management said on Thursday, following earlier data on consumer spending and private-sector job creation that were also positive.
"Data out of the U.S. has been strong and that has helped support oil prices. The market wants to move higher, but is reluctant to, unless it sees a clear resolution to the euro zone crisis," said Victor Say, analyst at Informa Global Markets in Singapore.
Traders will be watching a key jobs report on Friday for further signs that U.S economic growth is accelerating.
A Reuters poll forecast U.S. jobs rose 122,000 last month with the unemployment rate holding at 9.0 percent. For a preview, see
In Europe, whose sovereign debt problems have weighed on oil prices for months, the European Central Bank signalled on Thursday it stood ready to act more aggressively to fight the region's crisis if political leaders agree next week on much tighter budget controls.
With sanctions against Iran being tightened, the prospect of disruption to its oil supplies remained in focus, possibly as a pre-emptive move by Iran.
"The political process (to impose sanctions) will take time, but if Iran sees a loss of income as inevitable, there is a greater risk that it takes what limited political and economic capital it has to the negotiating table by invoking a pre-emptive export ban," analysts at JP Morgan said in a report.
While such a move was likely to trigger the release of strategic reserves, the initial market shock could boost prices by $20 to $30 a barrel, the report said. (Additional reporting by Francis Kan in Singapore; Editing by William Hardy)
