By Omoh Gabriel
Following the International Atomic Energy Agency’s (IAEA) disclosure that Iran may be seeking a nuclear weapon, experts say oil could exceed $150 on rising political tensions in the Middle East and hit the $200 level if Israel attacks Iran. Khalid Al Awadi, a Gulf energy analyst in the Gulf, puts forward this scenario.
Awadi said that “if Israel attacks Iran; oil prices may well spike to $200 a barrel. The movement of oil in the Strait of Hormuz, through which major shipments from the region pass, will get disturbed, which may lead to higher costs of insurance and shipping.” Something has to be done with Iran. The UN has passed four rounds of sanctions to no avail. The George Bush administration tried diplomacy behind a united Western front. The Obama White House is essentially pursuing the same strategy and preaching the same one-word piece of advice: “Patience.”
And that buys Iran time, the one commodity it needs to allow it to achieve its nuclear ambitions. By sticking to their ineffectual diplomatic efforts, the UN, White House and Western nations are creating a potential chaotic situation for oil. And it could take us directly into another Great Depression before we know it.
International oil prices may top $150 a barrel on rising tension in the Middle East over Iran’s nuclear programme, which potentially, could send the global economy back into recession, according to experts.
Israel’s leadership remained silent on a report released late last Tuesday by the International Atomic Energy Agency (IAEA) claiming that Iran might be seeking a nuclear weapon. Israel’s defence minister warned last week of a possible Israeli military strike against Iran’s nuclear programme and rejected suggestions the Jewish state would be devastated by an Iranian counter-attack.
The United Nations has imposed four rounds of sanctions on Tehran, but none has succeeded in curbing Iran’s nuclear ambitions. Iran has throughout maintained that its nuclear programme is entirely for civilian purposes. In the meantime, the International Energy Agency (IEA) has said oil prices could reach $150 per barrel in the near term if investment in the Middle East and North Africa’s oil-producing region falls significantly from the $100 billion per year required.
