International threats see oil price rise

25 July 2008

The price of oil has risen following threats on major pipelines in Nigeria.

Militant group the Movement for the Emancipation of the Niger Delta issued a statement in response to claims it had received payment to protect the lines, saying: "[To prove] we are not a part of this deal, the Chanomi Creek pipeline and other major pipelines will be destroyed within the next 30 days."

The cost of a barrel of crude oil rose to $126.30 (£63.55), as tensions in the Middle East also increased, Bloomberg reports.

A top Israeli military commander said that "all options must be prepared" to prevent the development of nuclear weapons by Iran, reigniting speculation that the Strait of Hormuz may be closed.

Around 40 per cent of the world's crude oil supply passes through the strait, but Iran has said that it will be blockaded in the event of attack.

The threats recently led to the price of oil nearing the $150 per barrel mark.