IMF Warns Iran Sanctions Could Push Oil to $140

Forum Contacts RSS		RUSSIAN

RIA Novosti, PUBLISHED January 29, 2012

Sanctions on Iran by the OECD states could push oil prices up 20-30 percent to $140 per barrel unless alternative supplies from developing countries come on line, the International Monetary Fund said on Thursday.

"A halt in Iran's exports to OECD economies without offset from other sources would likely trigger an initial oil price increase of around 20-30 percent, with other producers or emergency stock releases likely providing some offset over time," the IMF said in its report for the G20.

The EU voted on Monday to ban oil imports from Iran. The move came after the Islamic Republic announced earlier this month that it had launched a nuclear enrichment program at a well-protected underground facility near the holy Shia city of Qom.

Western nations suspect Iran, which is already under numerous international sanctions, of pursuing a secret nuclear weapons program but Tehran insists it needs nuclear power solely for civilian purposes.

Iran has threatened to retaliate by blocking the Strait of Hormuz, the main export route for supplies from the Middle East.

"(The Strait's closure) could trigger a much larger price spike including by limiting offsetting supplies from other producers in the region," the IMF added.

Topics: Iran

Other news:

Russia, U.S. ink uranium enrichment pact for 2013-2022

Sergey Kiriyenko and Daniel Poneman signed the agreement.

Rosatom Managers Sacked, Fined over Corporate Party

According to the Dozhd TV channel, the corporation paid 12.5 million rubles (about $400,000) for the New Year’s bash.

Iran Busher to enter full operation in March 2012 – agency

In September, Iran officially opened Bushehr which was completed with Russia's assistance after a long delay.

Hero of the day

Iran views of its nuclear issue

It is difficult to say what will happen next, especially since the international community is split into two opposing camps on this issue. This article will analyze both of them, also taking into account the situation in Tehran.

INTERVIEW

Georgy Toshinsky
Not quite so. The authors of the concept, which was difficult to be realized in practice, turned to a clearer concept of a standing wave reactor (TP-1) that in principle allows finding the solution to the tasks stated for TWRs.

OPINION

Konstantin Bogdanov
The Yury Dolgoruky, the first Borei-class SSBN carrying Bulava missiles, is one step away from being put into service.