March 27, 2007	Tuesday	Rabi-ul-Awwal 7, 1428

LONDON, March 26: World oil prices on Monday struck the highest points so far in 2007, reaching above $64 a barrel in London, as the market fretted over rising tensions in major crude producer Iran, traders said.

In London, the price of Brent North Sea crude for May delivery jumped $1.10 to $64.28 a barrel in electronic deals. It had earlier struck $64.38 -- the highest point since December 4.

New York's main oil futures contract, light sweet crude for delivery in May, gained 54 cents to $62.82 in pit trading. Earlier on Monday it reached $63.30 -- last seen on December 21.

The Iran situation is adding a “geopolitical risk premium to crude prices, with many market participants concerned that the (nuclear) situation could escalate, potentially leading to Iran using oil as a bargaining tool,” Sucden analyst Michael Davies said in London.

The White House on Monday urged Iran to rethink a threat to limit cooperation with the UN nuclear watchdog agency and insisted Tehran bow to international demands to freeze sensitive atomic work.

“We would urge them not to go down that road,” said spokeswoman Dana Perino.

Iran, the world's fourth-biggest producer of oil, said on Sunday it would restrict its cooperation with the UN nuclear watchdog in retaliation for fresh Security Council sanctions over its disputed atomic programme.—AFP