HispanicBusiness

The average price for Iranian crude oil for delivery to Asian markets hit $124.37 per barrel on Friday, Shana news agency reported.

The Iranian light crude was traded at $122.8 per barrel in European markets and $120.20 in Mediterranean markets. Iranian heavy crude oil was also traded at $122.85 on the same day in Asian markets.

The stand-off between Iran and Western countries has dominated sentiment in the oil market for weeks raising fears that the escalating row over Tehran's nuclear program could lead to an oil-export halt and a disruption to shipping traffic in the Strait of Hormuz.

Iran produces about 3.5 million barrels of oil a day making it the second-largest oil producer in the Organization of Petroleum Exporting Countries.

Iran has announced that it was cutting off exports to the U.K. and France. Although neither country is a major user of Iranian oil, the move heightened fears that Tehran could halt exports elsewhere ahead of a European-Union oil embargo scheduled to kick in July 1.