Tuesday, April 11 2006 10:22 Hrs (IST) - World Time -

Singapore: Oil prices surged to within touching distance of 69 dollars in Asian trading today (Apr 11, 2006) on concerns of a possible US military strike against Iran, dealers said.

At 11:10 am (local time), New York's main contract, light sweet crude for May delivery was at 68.91 dollars a barrel, up 17 cents from its close of 68.74 dollars in the United States yesterday. Dealers said the market ignored efforts by President George W. Bush to dismiss as 'wild speculation' weekend reports that Washington was studying options for military strikes against Iran's uranium facilities.

"Obviously some market participants are reacting to it and so this morning the market continues to be bullish about it," said Victor Shum, an analyst in Singapore with global energy consultancy Purvin and Gertz.

The Washington Post and the New Yorker magazine reported over the weekend that the White House was exploring military options against Tehran which had vowed not to back down over its controversial nuclear programme.

Washington and its allies believe Iran is secretly trying to build a nuclear bomb, but the US administration went out of its way yesterday to play down the reports.

Iran, the world's fourth-biggest oil producer with an output of four million barrels per day, insists its nuclear programme is for civilian energy purposes.