Oil prices pushed higher this evening due to another bout of optimism about Europe's ability to contain its debt crisis, and on concerns about supply as tensions rise over Iran's nuclear programme.
US crude briefly jumped above $100 a barrel, helped by news that US retailers racked up record sales over the long Thanksgiving weekend, the traditional start of the holiday shopping season in the US.
The hopes for the euro zone helped the euro recover from Friday's seven-week low, and the dollar index weakened. A weaker dollar makes oil cheaper for holders of other currencies.
A bill to downgrade Iran's relations with Britain received final approval today, state broadcaster IRIB reported, a day after parliament approved the measure compelling the government to expel the British ambassador.
Brent crude rose $1.90 to $108.30 a barrel, while US crude gained $1.50 to $98.27 a barrel, having hit as high as $100.74.
A French push for an EU embargo on Iranian oil has run into opposition in some EU capitals, diplomats said, signalling that any decision was unlikely before a December 9 summit of EU leaders that comes ahead of a December 14 OPEC meeting.