London: World oil prices spiked on Wednesday with London Brent striking a six-month peak.
Brent North Sea crude for April delivery surged to $119.99 a barrel in early afternoon deals, reaching a point last seen on 1 August 2011.
Iran said Wednesday that it was considering cutting oil sales to six EU countries but would not do so “at the moment,” while unperturbed European officials said they were looking for other suppliers anyway.
The warning was in retaliation to an EU ban on Iranian oil imports that is being phased in as existing contracts expire up to July 1.
But after world oil prices spiked—in part because Iran’s English-language Press TV had reported Iran had already “cut” oil exports to those countries—media reported that no steps had yet been taken to reduce EU oil exports.
In later afternoon trade, Brent crude later stood at $118.95, up $1.60 from Tuesday’s closing level.