North Sea oil prices have soared to record levels, fueled by a frantic scramble among traders to secure essential supplies.

This comes amid heightened geopolitical tensions, following accusations from US President Donald Trump that Iran has failed to uphold a ceasefire agreement to immediately open the Strait of Hormuz, The Caspian Post reports, citing foreign media.

The benchmark Forties Blend, which tracks oil produced off the UK coast, climbed to nearly US $147 (£109.50) a barrel late on Thursday, eclipsing the previous peak record set during the 2008 financial crisis, according to data from LSEG.

The cost of North Sea oil has seen dramatic increases since the onset of the Middle East conflict, rising from about US $60 (£44.70) a barrel at the start of the year.

The jump jump is primarily attributed to the intense competition for physical oil shipments across Europe.

Brent crude oil, while experiencing a slight uptick due to ongoing tensions surrounding the ceasefire deal agreed earlier this week, remains considerably lower.

On Friday morning, Brent crude saw a 1.9 per cent rise, reaching $97.79 a barrel.

It had dipped as low as about $90 on Wednesday following the announcement of a two-week ceasefire between the US and Iran.

The ceasefire had been conditional on the reopening of the Strait, but Mr Trump has raised concerns the key trade artery is still being blocked.

The US president posted on his Truth Social platform: “There are reports that Iran is charging fees to tankers going through the Hormuz Strait - They better not be and, if they are, they better stop now! President DONALD J. TRUMP.”

He added in a separate post: “Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz. That is not the agreement we have!”

In the financial markets, London’s FTSE 100 was 0.17 per cent higher at 10,621.05 points on Friday morning.

In Europe, the French Cac 40 and German Dax were both higher, up 0.29 per cent and 0.23 per cent respectively in early trading.

Richard Hunter, head of markets at Interactive Investor, said: “Despite the oil price ticking marginally higher, the oil majors slipped and, given their size, this weighed on the FTSE 100 at the open.

“The index was largely flat, with the downward pressure offset by some selective buying among the housebuilders, who have enjoyed a positive week following the likelihood of monetary tightening increasingly off the table.

“Retailers also found some friends after what has been a challenging few months, although the gains were far from spectacular.”