Global oil prices hit a new high amid escalating tensions in the Middle East.
Global oil prices have hit a new high, with New York's main contract, West Texas Intermediate (WTI) light sweet crude, reaching the highest level for 3.5 months amid speculations of a possible Israeli attack on Iran.
New York's main contract for delivery in September soared as high as USD 96.53 a barrel -- the highest level since May 11.
In London midday deals, Brent North Sea crude for October delivery increased by 66 cents to USD 114.37 a barrel.
Crude prices have been increasing following illegal US sanctions on Iran’s energy sector and repeated Israeli rhetoric of a unilateral strike on Iran's nuclear facilities.
On August 1, the US congress approved more illegal embargoes against Tehran, which seek to punish banks, insurance companies and shippers that help Tehran sell its oil.
The new US embargoes build on Iranian crude sanctions, signed into law by US President Barack Obama and approved in March, which aim to penalize other countries for buying or selling Iran’s oil. The sanctions took effect on June 28.
The US and Israel have repeatedly threatened Tehran with a military strike to force it to halt its nuclear energy program, claimed by the duo to include a military component.
Iran refutes the allegation and says that as a signatory to the nuclear Non-Proliferation Treaty and a committed member of the International Atomic Energy Agency, it has the right to use nuclear energy for peaceful purposes.