High oil price is unlikely to last

The USA looks to its strategic reserves as trouble in the Middle East sends the price of oil soaring.

Crude oil prices have hit a four-month high of $117 a barrel. Investors have been anticipating more money printing, while mounting fears of an Israeli attack on Iran's nuclear facilities in the next few weeks have fuelled worries over supply shortages. Military action could close the Strait of Hormuz, through which a fifth of global oil supplies pass every day. Riots elsewhere in the Middle East have also caused supply jitters.

Early this week prices eased amid speculation that the US would release some oil from its Strategic Petroleum Reserve (SPR). An SPR release would counteract any shortfalls in global supply and temper the rise in petrol prices, which is squeezing consumers.

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