Crude-Oil Prices Rise to $71.88 as Iran Found in Defiance of UN

Crude-Oil prices rose 91 cents to settle at $71.88 US a barrel Friday, on oil supply worries after the International Atomic Energy Agency said Iran defied the United Nation Security Council by enriching uranium.

Iran has said it seeks the technology only to generate power, but some other countries, including the United States, believe it aims to create weapons.

Iran has also said it does not intend to halt oil exports as a political tactic, but some traders fear it's a possibility if the dispute escalates. That bullishness has been aggravated by tight U.S. gasoline supplies, strong global demand and supply disruptions by separatist rebels in Nigeria, the fifth-largest source of U.S. oil imports.

Prices began rising earlier Friday as the United Nations' deadline approached and Iran's hardline president, Mahmoud Ahmadinejad, offered no hints of conciliation, vowing that "no one" could make his country give up nuclear technology and that the country "won't give a damn" about any UN resolutions concerning its nuclear program.

The UN Security Council is expected to meet next week to start a process that could result in punitive measures against Iran. The possibility of that inciting the Islamic republic to cut their oil exports is what traders are bracing for.

As an oil market participant, it's hard to know. The Iran situation has added about $10 a barrel to crude futures.

An agreement with Iran, as well as an agreement between the Nigerian government and separatists, could push crude prices down back towards the $60-a-barrel mark. But if the tension keeps mounting, they will likely rise above $80 a barrel, surpassing the all-time peak of $75.35 reached briefly last Friday.