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Inflation fear as oil price rises over Iran

The price of crude oil has reached an eight month high, driven upwards by concern over the effect of oil sanctions on Iran, the world's third largest producer.

Benchmark US light crude oil rose 1.7% to $105.01 a barrel and Brent Crude futures rose to $120.72 a barrel.

There's concern that rising oil prices could exacerbate inflation problems in some countries, particular Asia, as Frederic Neumann, a senior economist at HSBC explains.