Iraq Warns Tensions May Push Oil Prices
(MENAFN) Amid rising strain in the Middle East, Iraqi Foreign Minister Fuad Hussein has cautioned that a potential shutdown of the Strait of Hormuz might cause crude oil prices to soar as high as USD300 per barrel.
This warning came during a telephone exchange with German Foreign Minister Johann Wadephul.
The escalation follows Israeli air raids on Friday morning that struck Iranian military and nuclear facilities, triggering a continued cycle of aggression between the two nations.
Hussein emphasized that if a wider conflict erupts, energy prices could spike to between USD200 and USD300 per barrel, which would “significantly increase inflation rates in European countries and complicate oil exports for producing states such as Iraq.”
The Iraqi official further explained that halting traffic through the Strait of Hormuz—a vital channel for global energy shipments—could “result in the loss of approximately five million barrels per day from Gulf and Iraqi oil supplies in the global market.”
The Strait of Hormuz plays a crucial role in global commerce, facilitating around 20 percent of the planet’s oil transportation.
On Saturday, Iranian lawmaker and Islamic Revolutionary Guard Corps leader Esmail Kousari declared that Tehran is earnestly weighing the option to close the strait to maritime activity.
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