Saudi Arabia warns oil prices could spike past $180 a barrel if Iran war rages on: report
Saudi Arabia Warns of Potential $180 Oil Prices Amid Iran Conflict
Saudi oil officials have issued a warning that oil prices could skyrocket to over $180 a barrel if severe supply disruptions caused by the war in Iran continue beyond April. This situation could have significant impacts on foreign economies and the US as gasoline prices surge at the pumps.
While such high prices would result in substantial profits for the oil-rich kingdom, it could also lead to a decrease in global oil consumption or even trigger a recession. Additionally, there are concerns that Saudi Arabia could be seen as profiting from a war it did not initiate, officials disclosed to the Wall Street Journal.
The price of Brent crude oil rose to $103 on Friday due to Iran’s blockade of the Strait of Hormuz, disrupting the supply of millions of barrels. Attacks on critical energy infrastructure in the Middle East have further elevated prices, indicating that they may remain high even if the conflict ends soon.
On the other hand, US crude oil prices have slightly decreased this week, reaching $95 a barrel on Friday. This shift occurred after the Trump administration announced a temporary halt on Russian energy sanctions, deliberated the possibility of lifting sanctions on Iranian oil, and considered releasing reserves once again.
