Tags: Oil | Iran | price | crude

Oil Seen Skyrocketing 50% if Iran Closes Waterway

Thursday, 05 Jan 2012 11:18 AM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Oil prices would soar as much as 50 percent in a matter of days if Iran made good on threats to close the Strait of Hormuz, officials say.

Iran has threatened to block off the passage and conduct military drills to protest sanctions slapped on the country by the West for allegedly trying to develop a nuclear program.

The U.S. has said its Navy is ready to keep the passage open, and Iran has warned the U.S. to back off.

Such saber rattling has sent U.S. oil prices above $103 a barrel.
_________________________________________________________

‘You Opened My Eyes to the Catastrophic Enormity of This Financial Debacle’
Debt ceiling ‘medicine will become the poison,’ according to famed economist. Brace for economic meltdown. Watch the Aftershock Survival Summit Now, See the Evidence.

_________________________________________________________

While closing the Strait benefits nobody, including Iran (it needs to export its oil and import gasoline and other derivatives because it has little refining capacity), the chances for an ugly incident and extended chest pounding are on the rise.

oilrig200apv2.jpg
(Associated Press photo)
"I fear we may be blundering toward a crisis nobody wants," says Helima Croft, senior geopolitical strategist at Barclays Capital, according to the New York Times.

"There is a peril of engaging in brinksmanship from all sides."

Closing the strait would not only irk the U.S. and Asian importers, but Arab exporters as well, possibly even sparking a military conflict, other experts say.

"Should the Iranians try and close the strait, you'll see war between Arabia and Persia at that point. In a worst-case scenario, there really is no limit on how high oil prices would go and therefore how high consumers would be paying at the pump," commodities research analyst and trader Stephen Schork told Newsmax.TV recently.

"It will make the last economic contraction of 2008 look like the good times."

According to the U.S. Energy Information Administration, flows through the Strait in 2011 came to roughly 35percent of all seaborne traded oil, or almost 20 percent of oil traded worldwide.

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Al Sharpton Gets Death Threat After NYPD Killings

Monday, 22 Dec 2014 08:03 AM

The Rev. Al Sharpton says he has received death threats from people blaming him and New York Mayor Bill de Blasio for th . . .

Another Hacker Group Warns Sony: Release 'Interview' or Else

Monday, 22 Dec 2014 07:24 AM

Competing pressures from different groups of hackers are being brought to bear on Sony Pictures over the decision not to . . .

North Korea Threatens US, Applauds Hackers

Monday, 22 Dec 2014 07:17 AM

North Korea on Monday lashed out at the Barack Obama, the FBI and Sony Pictures Entertainment as it once again denied an . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved