Oil prices soar as Iran resumes nuke enrichment

Rates in US jumped by $1.25 to reach $66.36 per barrel. Prices in London too shot up by $1.11 to $64.50 per barrel.

Oil prices have soared after Iran resumed uranium enrichment and ended United Nations checks of its nuclear sites in response to being reported to the Security Council over concerns it is building nuclear weapons.

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Despite past assurances from Tehran that it will not use oil as a political weapon, dealers fear that deteriorating relations and intensified rhetoric on both sides could lead to a disruption in supplies from the world's fourth-largest exporter.

Oil rates in US jumped by $1.25 in early trade to reach $66.36 per barrel. Prices in London too shot up by $1.11 to $64.50 per barrel.

"While Iran said last week that it would separate nuclear and oil as issues, it was only last year that it warned that oil could be used as a weapon to get its own way on the nuclear issues," said David Thurtell, commodity strategist at the Commonwealth Bank of Australia.

"This all adds fuel to the fire for those concerned about oil supply."

They touched $69.20 a barrel on January 23, nearing last August's record peak of $70.85, but have since faded as US refiners rebuild gasoline inventories and maintain healthy stocks of crude and heating oil, thanks partly to mild winter weather.