Speaking in New Delhi, IMF head Christine Lagarde has warned of a 20% to 30% jump in crude oil prices if the supply of Iranian oil is interrupted, AFP reports.
“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,” she told reporters.
She added that a “sudden and brutal” rise above the current price of $125 a barrel would have “serious consequences on the global economy” until other oil producing countries can bridge the gap.
Oil prices have been rising recently due to concern over tensions between Iran and Israel over reports of Iran’s nuclear weapon ambitions.
Recently reports have been circling suggesting that allege Israel believes it may be able to quickly disable Iran’s nuclear ambitions with a pre-emptive strike. However, US war game scenarios suggest that attack could become a regional war that pulls in US troops and other nations.
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