The price of oil jumped to over $101 dollars a barrel in Asia yesterday, as concerns rose over Iran’s threats to block critical shipping lanes.
The AP reports:
Analysts [say] fears of a disruption in oil supplies were a result of expectations that Iranian President Mahmoud Ahmadinejad will unveil new nuclear projects shortly. The U.S. and its allies accuse Iran of seeking nuclear weapons, a charge Tehran denies.
"I think the market is grappling between the softer demand outlook versus this ... situation we are seeing in the Middle East," said Natalie Robertson, a commodities analyst at ANZ Banking Group in Melbourne, Australia.
Also sending supply concerns higher was a vigorous spat between Israel and Iran following a bomb attack on an Israeli diplomatic target in India and a foiled attack in Georgia, said Robertson.