Economic Sanctions: Iran crisis drives oil prices skyward

New York’s main contract soared almost $2 a barrel, closing above $109 for the first time since May.

NEW YORK: World oil prices surged to new nine-month highs on Friday as traders fretted about the impact of heightened geopolitical tensions over Iran on global crude oil supplies. New York’s main contract, light sweet crude for April, soared almost $2 a barrel, closing above $109 for the first time since May. The benchmark West Texas Intermediate contract settled at $109.77, up $1.94 from Thursday’s closing level. Meanwhile, Brent North Sea crude for delivery in April shot up $1.85 to $125.47. Iran has been hit by a raft of economic sanctions by the United States, United Nations and the European Union and has threatened to cut off crude exports to Europe after the European Union announced it would stop buying Iranian oil. The spike in oil prices has triggered concerns about the global economy at a time of slowing growth mainly due to the eurozone debt crisis.

Published in The Express Tribune, February 26^th, 2012.