Oil is continuing its surge this afternoon, following the US jobless figures announced just after lunchtime.
The price of a barrel of crude has jumped by $6 to more than $134 as the dollar weakened on news that the US unemployment rate rose from 5% to a higher than expected 5.5%. Oil had already been heading higher after comments from Israel that an attack on Iran was increasingly likely.
On top of that, analysts at Morgan Stanley have predicted oil could reach a record $150 a barrel by early July.
The US unemployment news has sent Wall Street tumbling, with the Dow Jones Industrial Average down 210 points. The FTSE 100 is not as badly hit, down 34.8 points at 5960.5.
