Oil prices rose close to eight-month highs this evening as traders worried about heightened tensions between key crude producer Iran and the United States over transit through the Gulf.
A stream of positive economic data also helped lift prices, boosting the outlook for the global economy and energy demand.
US crude spiked to $103.74 a barrel, a level last touched on May 11. The contract fell back this evening to $102.61, down 35 cents from Tuesday's close. Brent crude jumped to $113.97 a barrel - its highest level since November 14. It later stood at $112.82, up 69 cents.
Oil rocketed on Tuesday, underpinned by positive US, Chinese and euro zone economic data, and deepening worries over Iran.
Iran has threatened to choke off shipping or go after US navy ships if Western governments implement the latest round of punitive sanctions over its nuclear programme.
