Jonathan Garber, FOX News: Saudi oil attack: The worst-case scenario
Oil prices were soaring Monday morning after a weekend drone attack, potentially conducted by Iran, knocked out more than half of Saudi Arabia’s production. West Texas Intermediate and Brent crude oils were both up more than 10 percent to $60.48 and $66.69, respectively as of 8:54 a.m. ET.
Saudi Arabia, OPEC’s most influential member and the world’s second-largest oil producer, accounts for more than 10 percent of daily crude oil production. A prolonged production stoppage or military conflict would have a big impact on oil prices and potentially dire consequences for the global economy.
“A full-blown US-Iran conflict” could cause oil to soar to $150 a barrel this year, according to London-based Capital Economics.
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WNU Editor: What's my worst case scenario. If it is proven that these attacks were launched from Iran, Saudi Arabia will need to respond, probably with military strikes against Iranian targets. From there the conflict becomes a full scale war with the U.S. becoming directly involved. The impact on oil exports and prices will be immediate, with global shortages and prices going through the roof.
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