World oil prices hit seven-week high today as traders fretted over the impact of simmering geopolitical tensions in the crude oil-rich Middle East.
Brent North Sea oil for delivery in September jumped to $107.48 per barrel and New York’s light sweet crude for August struck USD 91.86, matching highs last seen in late May.
“Prices have climbed ... primarily on the back of geopolitical risks,” said Commerzbank analyst Carsten Fritsch.
“The conflict in Syria, which has already been under way for 16 months, appears to be escalating.
“The Iran conflict is also coming into increasingly sharp focus, Israel having blamed Iran for the attack on Israeli tourists in Bulgaria.”
In late afternoon deals, Brent stood at $107.16, up $2 from Wednesday’s closing level, while New York was $1.91 higher at $91.78.
Israel accused Iran and Lebanese group Hezbollah of carrying out a deadly attack against Israelis in Bulgaria, setting the stage for new tensions in West Asia.
The Israeli Prime Minister, Mr Benjamin Netanyahu, said “all the signs point to Iran,” linking Wednesday’s blast to a string of attempts to attack Israelis around the world.
“Israel will respond forcefully to Iranian terror.”
Iran responded by saying it strongly condemns “all terrorist acts.”
Oil prices had risen yesterday, driven also by news of worsening violence in Syria where rebels claimed a bomb attack in Damascus that killed three of President Bashar al—Assad’s top security officials.
The bombing prompted the US Defence Secretary, Mr Leon Panetta, to warn that Syria was “spinning out of control”.