Oil prices up amid economic news, Mideast tension

NEW YORK (AP) — Oil prices jumped about 2 percent today as tensions rose in Iran and strong retail sales put a rosier glow on the U.S. economy.

Benchmark crude rose $2.37, or 2.4 percent, to end the day at $100.14 per barrel in New York. Brent crude, which is used to price foreign oil imported by some U.S. refineries, rose $2 to finish at $109.08 a barrel in London.

Analysts said traders were reacting to more saber-rattling by Iran reacting to accusations that it is building nuclear weapons.

Iranian leaders said the country's navy plans to run drills to practice closing the Strait of Hormuz at the mouth of the Persian Gulf.

About a third of the world's oil-tanker traffic passes through the strategic waterway, and even a brief closure could crimp oil supplies around the world. Longer, more-expensive routes would have to be used to transport crude from the region.