London ? Oil prices surged Monday in a fresh wave of anxiety after Iraqi President Saddam Hussein cut off crude exports to demonstrate support for the Palestinians in their struggle with Israel.

Saddam announced that Iraq would suspend oil exports starting Monday for 30 days or until Israel withdraws from Palestinian territories. His unilateral cutoff could put more pressure on other Arab leaders to move against Israel in retaliation for its offensive.

Iraqis demonstrate in support of Saddam Hussein after his announcement that oil exports would be cut off until Israel withdraws from Palestinian lands.

Iranian supreme leader Ayatollah Ali Khamenei on Friday urged Islamic nations to stop shipping oil for one month to countries with close relations with Israel. Libya announced Monday that it supported the call. Both nations are OPEC members.

Despite their earlier expressions of support for an oil boycott, Iran and Libya were unlikely to join with Iraq, said Jan Stuart, head of research for global energy futures at ABN Amro in New York.

Iran’s economy is too weak to go for long without precious oil revenues, and Libya is worried about jeopardizing its slowly warming ties with the United States, Israel’s main backer, Stuart said.

Iraq, which has a daily production capacity of 2.3 million barrels, exports about 1.8 million barrels a day under the close supervision of the United Nations. Iraq also is believed to export an estimated 250,000 barrels a day illegally, via pipeline to Syria and by truck to Turkey.

Some analysts expect 11-member OPEC’s biggest producer, Saudi Arabia, and other moderate members of the group to quietly raise output to make up for an Iraqi shortfall.

An OPEC source, speaking on condition of anonymity from cartel headquarters in Vienna, Austria, said oil ministers were conferring about how to respond.

May contracts for North Sea Brent crude spiked up $1.44 a barrel, or 6 percent, at $27.43 in London before falling back to $27.02. On the New York Mercantile Exchange, contracts of light, sweet crude for May delivery jumped to $27.23 before easing back to $26.55 a barrel, up 34 cents from Friday.

“This isn’t a shock price, but it is the Iraqis being mischievous and trying to wage a little economic warfare against the West,” said Peter Gignoux, head of the petroleum desk at Salomon Smith Barney.