Crude prices have soared to levels roughly 40 per cent higher than at the start of the year, bringing worries to the markets but bullishness to gold.
Iraq, one of the world's top oil producers, is now embroiled in skirmishes on its northern border as Turkish authorities seek permission to make incursions into Iraq and target Kurdish militants.
The effects on the oil price have been immense, with concerns over supply shortages adding to the problems in Iraqi production after the 2003 invasion of the country.
Now pipeline supply is said to be under threat, with the $88 per barrel reached on Tuesday now claimed by some to be only the prelude to further astronomical rises.
Tim Guinness, chairman of Guinness Asset Management, told Reuters that with transportation costs likely to hit economies hard, the crude price would only go up from here.
"Before 2010 it will go above $100, probably to around $150," he said.