The price of oil has risen above $124 per barrel, as tensions increase between the West and Iran over Tehran's nuclear programme.
Brent crude, which has gained more than 11% so far this month, traded as high as $124.28 (£78.60), the highest intra-day price since May 3.
US crude futures rose for a seventh day, its longest winning streak since a 10-day gain in December 2009.
The rise has been triggered by concerns over cuts in oil supply from Iran, the world's fifth-largest oil exporter.
The Islamic Republic is facing pressure from the West over its nuclear programme and European buyers of Iranian oil have cut back on purchases ahead of an EU embargo on Iran's oil imports, effective from July 1.
Some of Iran's biggest customers in Asia, including China, have also reduced their purchases.
British firms get less than 1% of their oil from Iran because the EU has already imposed sanctions on the country months ahead of the official ban.
Japan, the world's third-largest oil importer, may also cut Iranian crude imports by more than 20% in order to avoid US sanctions.
But Iran said it had maintained oil production levels in spite of the sanctions.
The stalemate over Iran's nuclear programme is working in favour of the Islamic Republic, as higher oil prices are compensating Iran for its loss of market share.
In euros, the price of Brent reached a record high (92.67 euros), adding rising fuel costs to the eurozone's debt troubles.
The eurozone has been warned by the European Commission that it is heading into its second recession in three years.
In 2011, Iran was supplying more than 700,000 barrels per day to the EU and Turkey but by the start of this year imports had fallen to about 650,000 in anticipation of the boycott.
Since December, the price per barrel of Brent crude has risen by about 20%.
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