Iranian Foreign Ministry spokesman warned Sunday cornering his country by US-led coalition will push prices to unsustainable levels and lead to dangerous consequences for the whole world.
“As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel,” Ramin Mehmanparast, Iranian spokesman, told the reformist daily Sharq.
“Imposing sanctions on oil and gas is among the sanctions that, if one wants to do that, the consequences should be fully considered before taking any action,” he said while warning US and its partners not to rush into any aggression.
Despite Iran’s insistence that it is working on a peaceful nuclear programme that will generate electricity and UN inspections failing to prove it otherwise, US government and its allies are adamant the Middle Eastern nation is working on designing an atom bomb.
The US Senate voted last week to punish foreign financial institutions that conduct business with Iran’s central bank, the main exchequer and facilitator of oil revenues. European Union, on the other hand, is mulling a ban on oil imports from the Islamic Republic.
Economists and financial critics are warning both Washington and Brussels of acting against the world’s fifth biggest exporter which could have a profound impact on struggling global economy and possibly lead to its collapse.
?The closer more stringent oil market sanctions come to reality, the greater the potential for Iran to become the first mover,? the Financial Times quoted Lawrence Eagles as saying.
?Hypothetically, if Iran halted exports to key countries, pre-empting the imposition of tighter sanctions, a supply loss could come quicker than the market expects and would, in our opinion, elevate associated concern,? the former International Energy Agency official and current chairman of oil strategy at JP Morgan said in a statement.
Eagles also argued that any pre-emptive sanctions and oil embargo announced by Iran will have disastrous implications for the West torpedo nascent European economies suffering from slow growth and sovereign debt crisis.
“I do not think the situation in the world and especially in the West today is prepared enough to raise such discussions,”Mehmanparast said in the interview.
Iran is the world’s third largest oil exporter and supplies 20 per cent of EU’s crude demands.