Oil prices have spiralled higher in recent days
Crude oil has jumped to new record highs above $147, driven by ongoing geopolitical concerns over Iran.
US light sweet crude rose to highs of $147.27, before dipping back to $145.08. In London, Brent crude climbed to $147.02, before settling at $144.49.
Market experts put the increase down to concerns about Opec member Iran's recent missile tests, concerns about global supplies and the weak dollar.
As a result, oil prices have jumped more than $10 in the past two days.
On Thursday, oil prices surged by almost $6 on the back of worries about missle tests by Iran - the second largest member of oil producing cartel Opec.
A day earlier, the country successfully test-fired long and medium-range missiles adding to concerns about Tehran's disputed nuclear programme.
Traders are also said to be concerned about global supplies after a Nigerian militant group said it would call off a ceasefire following a UK offer to help quell violence in the oil-rich Delta.
The group - the Movement for the Emancipation of the Niger Delta (Mend) - has been behind a series of high profile attacks on oil installations and kidnaps of expatriate oil workers in the past which has contributed to oil production in the country falling by around a quarter.
Meanwhile the weaker dollar has also made oil an attractive prospect for market players as it is cheaper for buyers using stronger currencies, analysts said.