World oil prices hit fresh records today, striking over $88 a barrel in New York, due to fears over tensions between Turkey and Kurdish rebels in oil producer Iraq.
US crude surged to an historic high of $88.20 a barrel, while London's Brent North Sea crude soared to a fresh all-time high of $84.35.
Prices also jumped on worries over global energy supplies, particularly during the forthcoming northern hemisphere winter, when demand for heating fuel hits a peak.
Turkey had moved a step closer on Monday to a possible incursion into northern Iraq as the government sought parliament's approval for military action against Kurdish rebel bases, despite US opposition.
Many of Iraq's largest oil fields are located in the north of the troubled country.
OPEC has said it is worried by the record run. However, it said the situation had arisen due to rampant speculation by big money investors, rather than any shortage of crude supply.
The AA earlier warned that the rise in oil prices will result in the cost of petrol going up on on forecourts in the coming weeks.
A statement by the association said that Irish motorists would have already felt the pinch at petrol pumps 'were it not for the unprecedented strength of the euro against the dollar'.
Meanwhile, the price of gold has reached its highest level since the start of 1980.
Gold prices surged as high as $767.09 per ounce on the London Bullion Market today.
The commodity has gained more than $100, or 15%, in value since the start of September.
