How much will oil prices go up if Iran decides to close the “Strait of Hormuz” in the Persian Gulf?
June 29, 2008 by Alexander
Iran has said countless times that it would almost certainly suspend most or all of its oil sales abroad in retaliation of an attack; that would remove a couple of million barrels from the current worldwide supply of roughly 85 million barrels per day. Then—and this is crucial—Ahmadinejad’s increasingly close ally, Hugo Chávez, would in all likelihood at least stop sales to the United States and possibly declare a general suspension of sales. If Iran is attacked, oil prices would go up to $200 - $300 a barrel. That is about $10-$12 USD a gallon.
