Iran Threat Trigger Oil Price Strengthens

Oil prices climbed to nearly $ 100 per barrel as Iran again threatened to block shipments of crude oil from the Persian Gulf. The threat followed a decision of the European Union to stop (embargo) of crude oil imports from Iran.

Previously, the EU has given preliminary approval to impose a ban on imports of Iranian crude oil. The move aims to cut Tehran's main source of income as well as pressure Iran to stop its nuclear program.

However, considering the economic crisis that was sweeping Europe since two years ago, Europe agreed to postpone the full implementation of Iran's oil embargo until July 1.
As a result, lightsweet Benchmark crude raised $ 1, 25 to USD99,58 per barrel in New York. Brent crude rose 72 cents to USD110, 58 per barrel in London.
Gas prices also raised more than seven per cent after one of the United States largest producers of natural gas says it will cut production this year.

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