U.S. CRUDE OIL PRICES TOPPED $70 A BARREL ON MONDAY, THE HIGHEST LEVEL FOR NEARLY EIGHT MONTHS, AS IRAN'S PURSUIT OF ITS NUCLEAR PROGRAMME HEIGHTENED FEARS THE U.S. MIGHT TAKE MILITARY ACTION AGAINST THE OIL-PRODUCING NATION, REUTERS REPORTED. U.S. LIGHT SWEET CRUDE GAINED 83 CENTS TO $70.15 BY 1845 GMT AFTER HITTING A HIGH OF $70.18. THE SESSION PEAK WAS THE HIGHEST SINCE HURRICANE KATRINA BATTERED OIL INFRASTRUCTURE ALONG THE U.S. GULF COAST AND DROVE U.S. CRUDE TO A RECORD OF $70.85 ON AUGUST 30 LAST YEAR. LONDON'S BRENT CRUDE ON MONDAY ROSE 78 CENTS TO $71.35 AFTER TOUCHING A NEW RECORD HIGH OF $71.40. "THE DRAMA OVER IRAN'S FACE-OFF WITH THE WEST, THE RISE OF INSURGENCY IN NIGERIA AND GASOLINE SUPPLY CONCERNS IN THE U.S. AHEAD OF THE DRIVING SEASON ARE KEEPING A HIGH FLOOR UNDER OIL," SAID VICTOR SHUM AT CONSULTANCY PURVIN & GERTZ IN SINGAPORE. FORMER IRANIAN PRESIDENT AKBAR HASHEMI RAFSANJANI SAID ON MONDAY IRAN WOULD CONTINUE TO ENRICH URANIUM FOLLOWING ITS ANNOUNCEMENT LAST WEEK IT HAD ENRICHED URANIUM FOR USE IN POWER STATIONS. "THE ISLAMIC REPUBLIC OF IRAN DOES NOT INTEND TO STOP," HE TOLD REPORTERS IN KUWAIT DURING A VISIT TO THE GULF STATE. THE WEST SUSPECTS THE NATION IS TRYING TO BUILD AN ATOMIC BOMB AND TALK OF A U.S. ATTACK HAS TOPPED THE INTERNATIONAL NEWS AGENDA SINCE A REPORT IN THE NEW YORKER MAGAZINE THIS MONTH SAID WASHINGTON WAS CONSIDERING USING TACTICAL NUCLEAR WEAPONS TO KNOCK OUT IRAN'S SUBTERRANEAN NUCLEAR SITES. --MORE 2125 Local Time 1825 GMT
