WASHINGTON, May 2: US Secretary of State Condoleezza Rice’s declaration that the US would keep pushing for UN sanctions against Iran over its nuclear programme has led to an immediate rise in world oil prices. The price of light crude oil for June delivery, in electronic trading on the New York Mercantile Exchange early Tuesday was $74.19 per barrel. In London, Brent futures were at $74.26 per barrel. On Monday, the New York market responded to Ms Rice’s threat by registering a rise of more than $1.50 a barrel, the biggest gain in a month.

The sudden rise in oil prices is attributed to fears that UN sanctions may lead the world’s fourth-largest oil producer to cut supplies or suspend it temporarily. “Iranian nuclear dispute continues to weigh prominently on traders minds,” Paul Harris, head of energy & emissions department at Bank of Ireland Global Markets, was quoted in the US media as saying.

“A Security Council resolution may precipitate action by Iran to limit or cease oil exports,” he warned. Michael Fitzpatrick, vice president of energy risk management at Fimat USA Inc., told reporters that oil prices should continue to “creep higher because there are potential threats to supply at a time when the global economy is growing.”

Ms Rice had said on Monday that the US would seek a UN resolution requiring that Iran comply with demands to stop enriching uranium. She mentioned a resolution under Chapter 7 of the UN Charter, which can be enforced through penalties or military action.