In the wake of a surge in oil prices following an Iranian decision to halt oil exports to French and British companies, gasoline prices are heading towards highs in the US market.
The average price of gasoline in February is up nearly 25 cents from the beginning of the year, according to the Automobile Association of America’s (AAA) Daily Fuel Gauge Report.
On Monday, the average price of regular gasoline in the US climbed to $3.565, marking a whopping 12.5-percent rise from the average price of $3.168 a year ago.
The price surge has triggered anger among consumers in the US and raised concerns over the country’s fragile economic recovery.
On Monday, US crude for April delivery gained nearly two percent, reaching USD 105.08 per barrel. Brent crude, Europe’s benchmark, rose about 0.5 percent to USD 120.18 per barrel.
Iran’s Oil Ministry announced on Sunday that it had cut oil exports to British and French firms in line with the decision to end crude exports to six European states.
The decision by Iran came after European Union foreign ministers agreed to ban oil imports from Iran and freeze the assets of the Iran’s Central Bank across the EU in line with a US-led effort to impose further pressure on the Iranian economy over its civilian nuclear program.
The anti-Iran sanctions, however, are to take effect on July 1, 2012, offering EU member states enough time to adjust to new conditions and gain access to alternative crude oil supplies.
Despite widely publicized claims by the US, Israel and some of their European allies that Iran’s nuclear program may include a military aspect, Iran insists on its civilian nature, arguing that as a signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it has the right to develop and acquire nuclear technology for peaceful objectives.
Moreover, Iran’s nuclear work has been closely monitored by the IAEA. The agency has conducted numerous inspections of the country’s nuclear facilities but has never found any evidence indicating a military diversion in Tehran’s nuclear program.
This is while the Israeli regime is widely known to possess between 200 and 400 nuclear warheads. Furthermore, Tel Aviv refuses to allow its nuclear facilities to come under international regulatory inspectors and rejects any international nuclear regulatory agreements.
—Agencies