Crude oil prices in the US and UK have started the week by reaching record highs of more than 70 dollars a barrel.

In the US, light sweet crude was 70 dollars 40 cents at close of trading; the highest settlement since trading began in 1983.

In the UK, Brent crude touched a record high of 71 dollars 62 cents before settling slightly lower.

Iran's refusal to halt its nuclear programme has increased fears of UN sanctions or even US military action.

Tension over the issue has increased substantially over the last month, with a corresponding increase in oil prices.

Despite the high prices, world demand remains strong, and Qatar's Oil Minister Abdullah al-Attiyah, said the Organisation of the Petroleum Exporting Countries is unlikely to cut oil output for the rest of this year if the demand holds steady.

He said OPEC ministers plan to consult informally this week at the International Energy forum in Doha, but that the cartel is unlikely to take any action.

The near-record cost of oil brought statements of concern from Japanese and Indian government officials about the potential impact on economic growth.

PHOTO CAPTION

Police officers stand guard on the rooftop of Vienna's OPEC headquarters September 20, 2005. (Reuters)