RIYADH: Saudi Arabia has warned that oil prices could surge to $180 per barrel due to the closure of the Strait of Hormuz.
According to a Wall Street Journal report, the ongoing Iran conflict has already caused a shortfall of millions of barrels in global oil supply.
If the war continues, prices may reach $180 per barrel by the end of April.
Analysts widely agree that if the Strait of Hormuz through which nearly one-fifth of the world’s oil normally passes during peacetime remains effectively closed in the coming weeks, prices could rise significantly further.
Oil prices have already increased by up to 50%.
Market experts are now seriously considering the possibility that international oil prices could climb as high as $200 per barrel in the event of a prolonged blockage.
It is worth noting that Iran announced the closure of the Strait of Hormuz at the start of the conflict and threatened to attack any vessel attempting to pass through.
U.S. President Donald Trump failed to secure international support to reopen the strait via naval convoys, while other countries are attempting to negotiate safe passage agreements directly with Iran.
