Global crude oil prices have jumped 1.3% to above $30 (Ј19) per barrel over fears an explosion onboard an oil tanker off Yemen was a terrorist attack. The incident on the recently commissioned tanker Limburg occurred near the mouth of the Red Sea and bears similarities to an attack on a US navy destroyer two years ago.
The price of oil, which has already been inflated by threats of war against Iraq, could rise further because of concerns about the disruption of supply from the Middle East. High oil prices would be damaging for hopes of a US-led global economic recovery. In Asian trade, US light crude rose 46 cents to $30.08 before creeping back to $30.02 at 0345 GMT.