In a knee-jerk reaction to a threat by Iran's supreme leader that Iran could jeopardize the world's oil supply if punished by the West over its nuclear program, oil prices rose on Monday. The United States and its allies would be unable to secure oil shipments passing out of the Persian Gulf through the strategic Strait of Hormuz to the Indian Ocean.
Light, sweet crude for July delivery spiked to US$73.23 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.
Oil prices rose last week despite rising U.S. inventories combined with an expected decision by OPEC to leave its output quotas steady at a ceiling of 28 million bpd.
05-Jun-06 
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