Oil prices are hovering just below 2005's record high of $70.85 a barrel as tension over Iran's nuclear ambitions dominate the market. Light, sweet crude rose 30 cents to $70.70 a barrel in Asian electronic trading, just off last year's intraday high reached after Hurricane Katrina. Iran's dispute with the international community has fuelled the price spike as have output disruption in Nigeria. Brent crude prices have already touched a record $71.46 a barrel in London. Light, sweet crude closed at a record $70.40 in New York, rising more than $1 on Monday. Analysts said that prices would continue to head upwards as long as Iran's standoff with the international community remained unresolved. "The Iran issue is the driver of the day, the extra factor causing the run-up in prices," said Tobin Gorey, a commodities strategist at the Commonwealth Bank of Australia. Violence in Nigeria, which has led to the suspension of 25% of its output, has also forced prices upwards in the past four weeks. Over this period, prices have gained more than $10, or 16%. Global demand for oil remains intense, particularly in the run-up to the US driving season. "The basic thing underlying the industry is that global demand remains very strong," Mr Gorey added. Opec producing countries have admitted there is little they can do to quell the rise in prices.