US oil prices and Brent crude shot up to all-time highs today, on tensions in the Middle East and worries over energy supply shortages ahead of the northern hemisphere winter.
US crude for December jumped to a record-peak of $92.22 a barrel, before later falling to $91.10 on Friday evening.
Prices were up about 50% from the start of the year, spurred by strong demand for oil in the US and China, a weak US dollar, investment flows from pension and hedge funds into commodities and oil, political tensions and OPEC supply restraint for most of this year.
But US crude is still below the inflation-adjusted high of $101.70 hit in April 1980, a year after the Iranian revolution. London Brent crude also hit a fresh all-time high of $89.30. It later fell back to $88.35.
The US slapped new sanctions on Iran and accused its Revolutionary Guard of spreading weapons of mass destruction, but Russia said such moves only forced Tehran into a corner over its nuclear programme.
Also labelling Iran's Qods military force a supporter of terrorism, Washington imposed sanctions on Iranian companies, individuals and the defence ministry, hoping to increase pressure on Tehran to stop uranium enrichment and curb its 'terrorist' activities.
Such pressure has increased investors' worries that Tehran could retaliate by cutting oil exports to Western nations.
Oil, which was falling at the start of the week on concerns about the strength of the US economy, has rallied since US data on Wednesday showed a larger-than-expected 5.3-million barrel drawdown in US crude inventories.
The sharp fall in crude stocks, combined with fresh signs that oil cartel OPEC will shrug off calls for additional oil from big consumer nations, has exacerbated fears of a possible supply crunch in the coming winter.
