The price of European Brent oil futures opens Monday’s trading session hovering at $125 a barrel as traders and investors await more news on the situation over Iran’s nuclear programme, which remains the driving force of higher oil prices in 2012.<\/p>\n
Latest Brent Oil Price<\/strong><\/p>\n In London, Brent crude oil futures for May 2012 delivery was trading at $124.94 a barrel, 07.57 GMT today on the ICE Futures Exchange.<\/p>\n Iran Oil Sanctions<\/strong><\/p>\n Tightened sanctions by the West have yet to dissuade Iran from pursuing its controversial nuclear programme but have triggered an oil price spike that could trigger a global recession.<\/p>\n Brent oil prices hit a record high in euro terms earlier this month and analysts now believe they may have already dragged the eurozone into recession.<\/p>\n New sanctions by the US and EU against Iran have ratcheted up tensions and the price of oil as traders worry about the risk of hostilities, including an attack by Israel on Iranian nuclear facilities.<\/p>\n “There is time to solve this diplomatically, but time is short. Iran must act with the seriousness and sense of urgency that this moment demands. Iran must meet its obligations.” said US President Obama yesterday, who will discuss the issue with the leaders of Russia and China late Monday.<\/p>\n The US and the European Union are imposing sanctions on Iran to halt its nuclear program. The Persian Gulf nation has threatened to shut the Strait of Hormuz, a transit route for a fifth of the world\u2019s oil, in response to an embargo on its crude.<\/p>\n The IEA estimates that exports from Iran could plunge by about 800,000 barrels per day to one million bpd in the second half of the year after the tighter Western sanctions go into force.<\/p>\n Strategic Oil Reserves<\/strong><\/p>\n The high oil prices have clearly become a worry to Western governments.<\/p>\n French energy minister Eric Besson commented that France and other industrialised countries were considering releasing part of their strategic crude reserves to keep oil prices down.<\/p>\n Last week Obama discussed such a possibility with visiting British Prime Minister David Cameron, the White House had confirmed.<\/p>\n<\/p>\n