Oil on the Nymex rose by US$1.50 on Tuesday to US$98.41 per barrel in New York. Brent crude rose to US$$116.23 per barrel in London.
Oil prices climbed on threats that Iran is likely to cut off supplies to Europe. Lawmakers in Iran are advocating a plan to halt crude exports to Europe before the European Union begins an oil embargo this summer. The EU embargo is part of a broader strategy by Western nations to pressure Iran to abandon a nuclear program that the U.S. and other nations believe is developing weapons. Iran, the world's fourth-largest oil producer, ships 18 percent of its crude exports to the European Union. When the embargo takes effect in August, experts predict Iran will make up for the lost business by selling more oil to China and India. European nations say they need time to find new suppliers. Iran is trying to speed up the process and force the EU to replace its oil sooner than expected.