Oil prices rose above $68 today as it looked likely the UN Security Council would soon become involved in the Iran nuclear crisis, offsetting expectations for a build in US domestic crude and product inventories.
US light crude climbed 26 cents to $68.18 a barrel by 1255 GMT, while London Brent crudejumped 48 cents at $66.47 a barrel.
The market has been on edge for weeks over Iran's standoff with the West, fearing supply disruptions from the world's fourth biggest oil exporter.
"Iran's position is changing from one day to another, blowing hot and cold, and I guess the market is worried because we don't know where we are going," said Frederic Lasserre, head of commodities research at Societe Generale.
Iran's oil minister told reporters in Vienna yesterday that it would not halt its exports, though Iranian President Mahmoud Ahmadinejad today insisted Tehran would not give up the right to a peaceful nuclear programme.
The United States won agreement this week from a reluctant China and Russia to support taking the Iranian nuclear issue to the UN Security Council, a step that could ultimately lead to sanctions.