Oil soared more than 5% higher yesterday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.

The price of crude oil declined after topping $72 a barrel last week as a key Russian pipeline began resuming shipments and global oil flows appeared undisturbed days before tougher US sanctions against Iran kick in.

The global prices of crude oil have risen the most in a week, as Hurricane Florence threatened US east coast petrol supplies and as sanctions began crimping Iranian oil exports.

Brent crude surged to a 26-month high as Turkey threatened to shut down Kurdish crude shipments through its territory to punish the Iraqi region for holding an independence referendum.

Oil prices rose yesterday as strong global refining margins and the reopening of US Gulf Coast refineries provided a more bullish outlook after sharp drops due to Hurricane Harvey.

Oil slipped under $46 a barrel yesterday after the Organization of the Petroleum Exporting Countries (Opec) reported that the group’s production climbed last month.

Oil rose to an 18-month high as output cuts by Kuwait and Oman signalled that Opec and its partners are delivering on their accord to stabilise the market.

Oil prices jumped about 3% yesterday, with Brent hitting one-year highs, after Russia said it was ready to jointhe Organization of the Petroleum Exporting Countries (Opec) in curbing crude output and Algeria’s oil minister said he expected similar commitments from other non-Opec producers.

Oil rose to a four-month high in London ahead of a meeting in Doha this month where producers will discuss freezing output.

Oil futures rallied yesterday erasing losses on strong jobs data and US government forecasts for lower domestic crude production growth and higher global demand for oil.

Saudi Arabia’s new king is expected to continue a policy of keeping oil output steady to drive out rival producers, though the royal succession has focused market attention on the future of the kingdom’s long-serving oil minister.

Brent has advanced on speculation that the drop in prices below $80 a barrel for the first time in four years increases the likelihood that the Organisation of the Petroleum Exporting Countries (Opec) will curb output.

An historic cathedral was destroyed today in a Christmas Day fire.

Oil prices slumped to a fresh 18-month low today as the mild winter in the United States and western Europe kept a lid on demand at a time of growing global supplies.

CRUDE oil rose above $70 a barrel in New York as robust economic growth in the US and China, the two biggest oil consumers, may bolster fuel demand.

The price of crude oil fell for a third straight day today, brought down from a midweek record high by news of higher-than-expected US stocks and by China’s latest moves to cool its economy.

CRUDE oil futures rose as the approach of Hurricane Ivan disrupted production and the arrival of shipments in the Gulf of Mexico, where a quarter of US oil and natural gas is pumped.

Oil prices shot up to $45 (€37) a barrel today after the Russian oil giant Yukos said it cannot pay wages and that its output could suffer due to a court ruling that froze some of its assets.