Saudi/Iranian war could send oil surging and impoverish the world!

World

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(RT) An armed conflict between Riyadh and Tehran would have a major impact on oil markets and the global economy. RT asked experts what a war between the two Middle East superpowers would mean for crude prices.

If a conflict happens, oil prices could increase 500 percent.

Ivan Karyakin, an investment analyst at Global FX, points out that the area of possible conflict pumps a third of global oil. Saudi Arabia, Iraq, Iran, the United Arab Emirates, Kuwait, Oman, and Qatar together produce about 28 million barrels per day, which is slightly less than 30 percent of global production; prices will go up immediately to $150-180 per barrel, he said.

“Then everything will depend on the duration of the conflict. The world market will survive two or three days of the conflict. If the conflict lasts a week, then prices will rise to $200 or higher, and this will have long-term consequences"

A sharp jump in oil prices and other hydrocarbons will threaten the stability of the entire global economy, as it will lead to a surge in inflation, warns Andrey Dyachenko, Head of Private Solutions Department of Сastle Family Office in Russia  “At the time of relatively low growth rates, a significant jump in inflation will lead to the impoverishment of a large part of the world population.”