Uranium prices have reached the highest since early March thanks to traders' growing optimism about the prospects for nuclear fuel demand amid Europe's energy crisis.

The cost of uranium has risen by 7% since mid-August, exceeding $50 a pound, and many market participants predict a further rise in prices, the Financial Times wrote. Bank of America experts expect uranium to rise to $70 a pound next year.

Not counting March, when many commodities jumped in price because of Russia's military operation in Ukraine, the price of uranium futures last rose above $50 a pound more than 10 years ago, says consulting firm UxC, reports Interfax.

The market is supported by increased demand for uranium in Europe, where the energy crisis is intensifying, as well as signals of changes in attitudes toward this type of fuel in other regions.

Japan signaled last month that it intends to accelerate the return to operation of nuclear reactors and consider building new nuclear power plants for the first time since the Fukushima accident in 2011.

Authorities in California in early September decided to extend the life of the last operating nuclear power plant for another five years, while Germany is discussing the possibility of delaying the closure of the plant in case of energy shortages in the coming winter.

Experts say the market remains vulnerable to a potential reduction in uranium supplies from Russia. The country accounts for 5% of global uranium production and about two-fifths of global uranium enrichment capacity, Berenberg data show.

Removing Russia from the global fuel supply chain could be a source of market destabilization and price volatility, Berenberg experts warned.