Oil prices hit $147 high on Iran fears

Political turmoil around the world has sent oil prices soaring to a new record of over $147 a barrel.

London's Brent North Sea oil for August delivery jumped to $147.50 a barrel, while New York's main oil contract, light sweet crude for August, also broke the $147 barrier to hit $147.21.

Oil prices had fallen slightly at the beginning of the week but started to rise as the events in Iran unfolded.

Missile tests by Opec member Iran spooked investors, as a potential conflict with Israel and the US looms.

Meanwhile, in Nigeria, a ceasefire between rebels and the government has been abandoned and in Brazil, workers at Petrobas have threatened a five-day strike.

The possibility that global supply could be restricted further has pushed up prices, as has a weak dollar, which makes the commodity cheaper to buy in other currencies.

"With a limited ability to make up for disruptions in global supply, the price of oil has become increasingly sensitive to changes in the outlook for oil production.

"Adding to this problem is the fact that a significant portion of new production is in remote or hostile areas, whilst costs to extract it are growing at a significant rate," Brian Youngberg, energy analyst at Edward Jones said.