Lift sanctions or face $150 oil, Iran says

April 20, 2011 - 0:0

The head of Iran’s central bank warned that oil prices will rise above $150 a barrel if economic sanctions against the Islamic Republic are not lifted soon.

“Iran can have an effect on world energy and fuel. Fuel prices will go up dramatically,” Mahmoud Bahmani said in a recent interview with The Washington Times at a meeting of the International Monetary Fund in Washington.
“If sanctions are not removed, particularly sanctions against banks and other economic sanctions, the price of oil will go above $150 a barrel.”
A top Federal Reserve official predicted last month that such a price could drive gasoline above $4 a gallon and throw the U.S. economy into another recession. The last time oil came close to that price was in the global recession that began in 2008, when a barrel of crude hit more than $147 in July of that year.
Iran is the world’s third-leading oil exporter, but it lacks the capacity to refine crude petroleum into gasoline. It is a member of the Organization of the Petroleum Exporting Countries, which sets production limits for most oil exporters. The country also has the world’s second-largest known reserves of natural gas.
(Source: The Washington Times)