Mideast conflict could spark petrol price hike - analyst
The growing conflict in the Middle East could spark an increase in European petrol prices, an analyst has suggested.
London oil prices have surged after Iraq said oil should be used to put pressure on the US to force Israel out of Palestinian areas.
By early afternoon, oil for delivery in May was $26.60 (€30) a barrel on London's International Petroleum Exchange - a six-month high - and catching up with price rises on overseas markets which had been open yesterday.
Kamal Sharma, currency strategist at Commerzbank, said the oil rise was on the back of the heightened political tension.
He added there was too much underlying risk to suggest the price would fall in the near future.
Mr Sharma said the rise was also likely to have a knock-on effect on petrol prices.
"You are going to get some small impact on petrol prices with crude at six-month highs.
