Oil above $130 on weak dollar, Israel comments

LONDON (Reuters) – Oil rose by more than $2 a barrel to above $130 on Friday, bringing gains in the last two days to $8 as the U.S. dollar weakened on signals the European Central Bank may raise interest rates this year.

Comments from Israel’s transport minister that an attack on Iranian nuclear sites looked “unavoidable” given the apparent failure of sanctions to deny Tehran technology with bomb-making potential also helped drive prices higher.


This was the most explicit threat yet against Iran from Prime Minister Ehud Olmert’s government.

U.S. light crude for July delivery was up $2.46 at $130.25 a barrel by 1018 GMT.

Oil surged $6 in after-hours trading on Thursday in the U.S., erasing two days of sharp losses triggered by worries that high oil prices were starting to dent demand.

Reuters