Oil prices rose back above $130 a barrel Monday on concerns that the threat of new sanctions against Iran over its nuclear program may escalate tensions in the oil-rich Middle East.
A slightly weaker dollar and concerns about a storm in the Gulf of Mexico also contributed to higher prices.
By midday in Europe, light, sweet crude for August delivery was up $1.73 to $130.61 a barrel in electronic trading on the New York Mercantile Exchange.
Last week, Nymex crude fell more than $18 from a trading record of $147.27 hit on July 11. The contract settled at $128.88 on Friday, down 41 cents.
In London, September Brent crude rose $1.67 to $131.86 a barrel by midday on the ICE Futures exchange.
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