World oil prices surged this evening as traders reacted to news that protesters had stormed Britain's embassy in Tehran.
US crude leapt $1.41 to $99.62 a barrel, while Brent North Sea crude rallied $1.93 to $110.93 in London.
Protesters stormed Britain's embassy and another diplomatic compound in Tehran today, sparking international alarm and dramatically raising tensions with the West over Iran's nuclear programme.
Markets are already on tenterhooks over Iran, which is the second biggest OPEC oil producer after kingpin Saudi Arabia.
EU nations were expected to unveil more sanctions against Iran at a foreign ministers' meeting on Thursday, after a report by the UN atomic energy watchdog strongly suggested Tehran was researching nuclear weapons.
The oil market won further support from news of rebounding US consumer confidence in November, with a key survey showing a recovery from the lowest levels seen in more than two years.
Oil also rose on investor optimism over the euro zone crisis after an Italian bond auction that was seen as successful. The European single currency jumped above $1.34 on the back of the news. The weaker US currency makes dollar-denominated crude cheaper for buyers using other, stronger currencies. In turn, that tends to boost oil demand and prices.
