Price of oil surges as sabres rattle

Speculation that the United States is preparing to launch a military attack on Iraq sent oil prices surging to a six-month high yesterday.
The slowdown in the global economy had depressed the price to well below $20 a barrel in the months since the terrorist attacks on New York and Washington, but Brent crude powered to $24.30 yesterday, up $0.46 on the day, and close to pre-September 11 highs.

A recovery in oil prices will raise fears of dearer petrol for motorists in the months to come, after prices at the pump fell 8% in the year to January.