Oil Prices surge as Iran supplies to Europe

Iran's decision to cut oil supplies to Britain and France has resulted in a rapid increase in oil prices in the international markets, specially in Asia. New York's main contract, the light sweet crude for delivery in April, gained eight cents to reach $107.15 while North Sea's Brent crude for April delivery jumped beyond $122 a barrel. Iran's Oil Ministry announced on February 19 that it had cut oil sales to British and French firms. Tehran also announced it may also halt oil exports to more European countries. The decision by Iran came after European Union foreign ministers agreed to ban oil imports from Iran and freeze the assets of the Iran's Central Bank across the EU in line with a US-led effort to impose further pressure on the Iranian economy over its civilian nuclear program. Meantime, news of Iran cutting supplies to six EU member states caused a lot of concern in Europe and in the world's markets. The bloc currently buys about 18% of Iran's oil exports. Iran is the world's 4th largest oil supplier, with China, Japan, and India its largest buyers.