NEW DELHI – IMF chief Christine Lagarde warned Tuesday that crude oil prices may spike by up to 30% if Iranian supplies were disrupted, causing “serious consequences” for the global economy.

The standoff between Iran, the world’s second-largest supplier of oil, and the West over the Islamic Republic’s nuclear program is seen as a flashpoint that could sharply increase world crude prices.

Financial Post | Business

NEW DELHI – IMF chief Christine Lagarde warned Tuesday that crude oil prices may spike by up to 30% if Iranian supplies were disrupted, causing “serious consequences” for the global economy.

The standoff between Iran and the West over the Islamic Republic’s nuclear program is seen as a flashpoint that could sharply increase world crude prices.

“Clearly it would be a shock to economies if there was a major shortage of exports of oil out of Iran, it would certainly drive up prices for a period of time,” Lagarde told reporters in New Delhi, wrapping up a two-day visit.

The International Monetary Fund (IMF) has calculated that an interruption in oil supplies from Iran could increase oil prices by 20 to 30%, said Lagarde, who arrived in India at the weekend from neighbouring China.

“A sudden and brutal rise in the price of oil” from Brent crude’s current levels of…

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