Iran warns of high oil prices to come

15 July 2008

The president of Iran has warned that oil prices will rise if the country's nuclear ambitions are restricted.

Mahmoud Ahmedinejad told Iranian television that threats of attack would be among various reasons for continuing increases in costs, according to Reuters.

"Oil prices will go higher for different reasons that everyone knows, but one of the reasons is the threat of military attacks on our nuclear programme," he said.

This month the price of a barrel of crude oil soared to a record high of nearly $146 (£72.95) amid speculation that Israel would attack nuclear facilities in Tehran and prompt Iran to block shipments through the Strait of Hormuz.

Although tensions subsided along with prices, the news agency reports that the recent firing of test missiles could lead to a row with the West and fuel further hikes, with the US not ruling out its own military action.

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