Oil price crisis: Iran chaos sees oil prices skyrocket after Trump warning - 'Big mistake'

Oil prices have risen 6 percent after the Twitter warning, with US-Iran tensions spiralling over the past hours. US West Texas Intermediate crude rose $3.24 (6.03 percent), CNBC has reported, to $57 per barrel. Brent crude also rose by $2.81 (4.5 percent) to $64.63 per barrel.

One expert has warned oil prices could soar to $150 to barrels if a war broke out between the US and Iran.

Henry Rome of the Eurasia Group told CNBC: “A limited war would likely push oil prices above $100 per barrel, while a major confrontation would likely drive prices above $150.”

He said all-out conflict “would have a significant impact on commodity prices and could trigger instability beyond the Gulf”.

Iran itself has acknowledged it holds the key to oil prices soaring or not holding.

A military official said last month: “The first bullet fired in the Persian Gulf will push oil prices above $100.

“This would be unbearable to America, Europe and the U.S. allies like Japan and South Korea.”

However, not all experts believe a war would necessarily lead to prices topping $100 per barrel.

Stephen Brennock of PVM Oil Associates said: “I think that $100 per barrel is ambitious.

“In the unlikely event of any direct conflict and subsequent disruptions to supplies in the region.

“Global spare capacity is ample and US production is steadily increasing.

“This should act as a buffer to any supply shock thereby limiting the prospect of a return to $100 oil.”

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