Obama blames uncertainty on Iran, for Hike in oil prices

"The key thing that is driving higher gas prices is actually the world's oil markets and uncertainty about what's going on in Iran and the Middle East, and that's adding a $20 or $30 premium to oil prices," he said in an interview with the American Automobile Association (AAA) on Friday. Obama also stated that increasing demand for oil in China and India was also driving up prices, AFP reported. "As more and more people around the world see their standards of living rising, they purchase cars, they have demand for oil, that creates a greater demand worldwide and that raises the price," Obama added. Earlier, a prominent member of the Iranian parliament had said that the US decision to exempt 11 states from tough sanctions against purchasing Iranian crude is part of Washington's efforts to block soaring oil prices. On Tuesday, the United States exempted 11 nations including 10 European Union (EU) members and Japan from tough new sanctions on Iran as they have reduced oil purchase from Tehran. "They are probably hopeful that the decision will have an impact on soaring oil prices in the world and that it will enable them to put a cover on the EU's unsuccessful and failed policy of imposing sanctions on Iran's oil sector," Chairman of the parliament's National Security and Foreign Policy Commission Alaeddin Boroujerdi said. "Regarding the Islamic Republic's firm stance, the move is an overt retreat from the United States' previous stance," he added.