THE price of Brent crude oil has hit its highest price in four years, as fears grow over US sanctions on crude exports from Iran.
The oil price rose to $80 per barrel – the highest it has been since November 2014.
Patrick Pouyanne, the CEO of French oil giant Total, was among those predicting that oil could reach $100 per barrel within months.
He said: "We are in a new world. We are in a world where geopolitics are dominating the market again.
"Opec and Russia have been implementing their policies efficiently. And on top of it, you have the announcement on Iran, which is pushing the price up.
"So I wouldn't be surprised to see $100 per barrel in the coming months."
Brent hit a low of $27.88 per barrel on January 20, 2016, and has risen dramatically since then.
As well as sanctions by Donald Trump's adminstration aimed at Iran, there is the possibility of the US introducing measures targeting Venezuela's oil industry, with political and economic pressures already reducing output there.
The resulting boost to the oil price pushed the FTSE 100 to a record close of 7787.97.
Meanwhile, Iran has signed an agreement with a British consortium to develop an oil field in the country's south, according to state TV.
The agreement is the first between Iran and a key Western ally of the US since Washington last week announced it will pull out of the landmark 2015 nuclear deal between Tehran and Western powers.
Colin Rowley, the managing director of Pergas International Consortium, and Bijan Alipour, head of National Iranian South Oil Co, signed a preliminary deed on the partnership in the presence of British ambassador Rob Macaire in Tehran.
If the agreement turns into a contract, the project will require more than a billion dollars (£740 million) to produce 200,000 barrels of crude oil per day during the next decade in the 55-year-old Karanj oil field.
The field currently produces 120,000 barrels per day.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel