Oil prices continue to surge amid escalating tensions between Iran and the West and following Islamic Republic’s response to EU sanctions.
Price of Brent crude rose USD 1.85 on Friday to settle near a 10-month high of USD 125.47 a barrel, the highest since April 29.
US April crude increased USD 1.94 to settle at USD 109.77 a barrel, the highest close since May 3.
The hike in oil prices was triggered when Iran threatened last week to cut oil exports to six European Union states if they fail to sign long-term deals with Tehran.
On February 19, Iran’s Oil Ministry announced that it had cut oil exports to British and French firms.
Meanwhile, US President Barack Obama has blamed rising gas prices on tension with Iran. US gasoline prices have jumped nearly 9 cents in the past week to an average of 3.61 dollars a gallon.
The United States, Israel and some of their allies accuse Tehran of pursuing military objectives in its nuclear program, using this as a pretext to impose UN, as well as unilateral, sanctions against Iran.
Iran has refuted the allegations, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty and member of the IAEA, it has the right to use nuclear technology for peaceful use.
