Saudi Prince Warn of Increase in Oil Prices
Mohammed bin Salman, the Crown Prince of Saudi Arabia, has warned that oil prices could rise steeply due to tensions with Iran, threatening the world economy if the dispute carries on further.
“If the world does not take strong and firm action to deter Iran, we will see further escalations that will threaten world interests. Oil supplies will be disrupted and oil prices will jump to unimaginable high numbers that we haven’t seen in our lifetimes,” Prince Mohammed said in an interview with CBS on Sunday evening.
Tensions between the two countries flared up dramatically this month after drone and missile attacks hit Saudi oil facilities, triggering a big disruption to supply and a temporary spike in oil prices.
Prince Mohammed said he hoped that a military response could be avoided, and warned that war between the two countries would have devastating consequences far beyond Saudi Arabia.
“The region represents about 30 percent of the world’s energy supplies, about 20 percent of global trade passages, about 4 percent of the world GDP. Imagine these entire three things stop,” he said. “This means a total collapse of the global economy, and not just Saudi Arabia or the Middle East countries.”
The attacks on Abqaiq, the world’s largest oil processing plant, and Khurais oilfield temporarily knocked out more than half the world’s top exporter’s crude production, underlining the vulnerability of Saudi’s oil infrastructure.
Iran, which has repeatedly threatened to disrupt oil and petrochemical flows through the Gulf if US sanctions prevent it from exporting crude, has ruled out talks with the US until sanctions are lifted. Prince Mohammed said Mr. Trump should “absolutely” negotiate with Hassan Rouhani, the Iranian president, but said officials in Tehran “don’t want to sit at the table”.
@ Bandhiga Media