President Bush on Thursday outlined a new economic squeeze on Iran, which he blames for pursuing nuclear weapons and providing support to anti-coalition elements in Iraq.

Tehran maintains its nuclear program is for producing nuclear energy, a position international inspectors have not disproved.

Iranian influence in Iraq is also tricky. It is investing in Iraq’s economy, something Baghdad says it needs. It’s accused of supporting various militias, but this includes the Badr Corps of the Supreme Iraqi Islamic Council, a key member in the Bush-backed governing coalition in Iraq.

While the Iranian debate heats up, so is the price of oil. Brent Crude closed at $88.43 per barrel and West Texas Intermediate Crude at $91.31.

White House Spokeswoman Dana Perino was asked at Friday’s news briefing about the issue.

“Higher oil prices are something that has been building up for over a decade,” she said, adding Bush has called for more refining capacity and alternative fuels.

“Look, the problem here isn't the United States. It's not the international community. The problem is Iran,” Perino said.

When asked if there is concern that one result of new sanctions -- as well as traders’ fears of a Turkish-Iraq war -- would be a further increase in oil prices, Perino said: “Look, I think there could be a lot of reasons that oil prices go high. ... The basic problem comes down to supply and demand, and that's something that we are trying to address.