The oil price came within a whisker of a six-month high yesterday, amid warnings that military conflict between the US and Iran could send it to $100.
With both countries stepping up military action in the oil-producing region, Brent crude rose as high as $71.87 a barrel, having been as low as $65 this month.
The rally put it close to the $71.89 reached at the end of January, which was the highest level since the start of August.
Daniela Hathorn, senior analyst at Capital.com, said: ‘Renewed geopolitical tension between the US and Iran is clearly feeding into prices.’
Iran is the fourth-largest producer in Opec, the international oil producers’ organisation, with output of 3.2m barrels per day. Military conflict could hit production and lead to the closure of the Strait of Hormuz, a key route through which 20 per cent of global supplies pass.
‘Even temporary disruption to exports or infrastructure could send Brent towards $90 to $100, especially if markets perceive the risk as lasting more than a few days,’ said Hathorn.
Iran fears: Brent crude rose as high as $71.60 a barrel having been as low as $65 early this month
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