World oil prices Monday struck the highest points so far in 2007, reaching above 64 dollars a barrel in London, as the market fretted over rising tensions in major crude producer Iran, traders said.
In London, the price of Brent North Sea crude for May delivery jumped 1.10 dollars to 64.28 dollars a barrel in electronic deals. It had earlier struck 64.38 dollars -- the highest point since December 4.
New York's main oil futures contract, light sweet crude for delivery in May, gained 54 cents to 62.82 dollars in pit trading. Earlier Monday it reached 63.30 dollars -- last seen on December 21.
The Iran situation is adding a "geopolitical risk premium to crude prices, with many market participants concerned that the (nuclear) situation could escalate, potentially leading to Iran using oil as a bargaining tool," Sucden analyst Michael Davies said in London.
The White House on Monday urged Iran to rethink a threat to limit cooperation with the UN nuclear watchdog agency and insisted Tehran bow to international demands to freeze sensitive atomic work.
"We would urge them not to go down that road," said spokeswoman Dana Perino.
Iran, the world's fourth-biggest producer of oil, said Sunday it would restrict its cooperation with the UN nuclear watchdog in retaliation for fresh Security Council sanctions over its disputed atomic programme.
The
United Nations Security Council voted unanimously Saturday to impose the sanctions in a bid to pressure Iran into freezing its uranium enrichment programme.
The decision followed word on Friday that Iran had seized 15 British sailors in the Gulf, a move that roiled the market.
EU foreign policy chief Javier Solana said he would attempt to contact Iranian leaders Monday to discuss the fate of the British sailors being held by Iran.
An Iranian official said the navy personnel were being interrogated and would have to answer to allegations they violated Iranian waters.
"The case of the Britons who violated Iranian territorial waters is following the due legal process and they must answer for their violation," deputy foreign minister Mehdi Mostafavi said, state television reported.
AP
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