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Posted 2 hours 26 minutes ago

The price of oil has hit new highs in London and New York.

In London, Brent crude rose to $US147.25 during trade - 56 cents above the record set last week.

Traders say the main reason for the rise is simmering tension over key producer Iran.

Light sweet crude reached $US146.90 in New York, which is 92 cents higher than the previous peak.

- Reuters

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