Crude oil rose last week after
Israeli Deputy Prime Minister Shaul Mofaz said Friday that all options
are open as Iran drives toward a ``major breakthrough'' in its nuclear
weapons program. Oil climbed more than $4 a barrel in intraday trading
as Mofaz's comments fueled speculation that the U.S. or Israel may
attack Iran. Iranian President Mahmoud Ahmadinejad said OPEC's
second-largest producer will ``resist with force'' any outside efforts
to slow its nuclear program. Iran with a nuclear weapon would pose an
``unacceptable'' danger and be ``an existential threat'' to Israel,
Mofaz said.
Similar speculation of an
attack on Iran contributed to the oil-price rally that took futures to
a record $147.27 a barrel on July 11. Iran previously has threatened to
blockade the Strait of Hormuz, through which a quarter of the world's
crude is exported, if its nuclear facilities are targeted. It pumped
about 3.85 million barrels of oil a day in June. Iranian Supreme Leader
Ayatollah Ali Khamenei, the country's highest authority, said this week
that his country will push forward with its nuclear program, which
Iranian officials say is designed for energy generation and other
peaceful purposes.
Crude
oil for September delivery rose to $125.10 a barrel. Earlier, it
touched $128.60 a barrel. Oil rose $1.84, or 1.5%, this week. It was
the first weekly increase in four. Futures have slipped more than $22 a
barrel, or 15%, from the record on signs of declining demand in the
U.S., which consumed about 24% of the world's crude in 2007. They fell
11% in July, the biggest one-month decline since December 2004. Brent
crude oil rose to $124.18 a barrel.
Gold fell as
better-than-expected U.S. jobs data boosted the dollar and reduced
demand for alternative assets. Gold futures fell to $917.50 an ounce.
The metal dropped 2.1% for the week, the third straight weekly decline.
Gold has more than doubled since 2003, as the U.S. attacked Iraq and
violence in the Middle East escalated. The precious metal sometimes
moves in tandem with rising geopolitical instability. Silver futures
settled at $17.52 an ounce. Silver gained 17% this year, including a
0.8% rise last week. Platinum and palladium prices fell heavily on
Friday as poor results from carmakers including General Motors raised
fears of tumbling demand. Carmakers consume about half the world’s
platinum and palladium. Platinum fell to a six-month low of $1,641.50 a
troy ounce in London, down 6% on the week.