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Oil prices soar on EU Iran ban

OIL prices hiked to their highest levels today on news that the European Union they have reached a preliminary agreement to ban imports of Iranian crude.

While a date for the embargo has yet to be set, Brent crude jumped up $2 a barrel to just under €114 on the news but fell back later.

The news also shook stock market which had already been trading down on eurozone debt crisis fears.

But some analysts believe the potential to affect oil prices in the longer term might be exaggerated.

Most Iranian oil is bought outside the EU and US with the main purchasers Asia.