War could 'bring down economies of world' and oil could hit $150 a barrel, Qatari energy minister warns
However, the International Energy Agency chief took a more positive approach - with 'plenty of oil' in markets
The Middle East war could spark a new energy crisis capable of "bringing down the economies of the world," a Qatari minister has claimed.
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Saad al-Kaabi, energy minister for the gulf state, has warned the price of an oil barrel could double to more than $150, leading to hikes in household costs.
Oil is currently trading at around $85 a barrel, but this is forecast to rise dramatically after the conflict sparked by US-Israeli strikes on Iran last weekend.
Mr Kaabi told the Financial Times that such a rise will "bring down the economies of the world,".
He added: "If this war continues for a few weeks, GDP growth around the world will be impacted.
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"Everybody's energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply."
He said Gulf energy exporters could shut down production, and that could result drive the price of oil up.
Even if the war ends soon, it is likely to take weeks or months for production cycles to return to normal, Mr Kaabi warned.
It comes as Israel destroyed an Iranian military command bunker in Tehran, the IDF have said.
An underground bunker was initially planned to be used by Iran's Supreme Leader Ayatollah Ali Khamenei before his assassination, was destroyed.
But countering reports of potential global turmoil, International Energy Agency (IEA) chief, Dr Fatih Birol, suggested there was "plenty of oil in the market."
Dr Birol told reporters in Brussels on Friday the disruption caused by the conflict was "creating challenges for many countries."
Asked whether the IEA was mulling the release of emergency stocks, the chief said "all options are on the table" but that there were no plans for "collective action". at this stage.
He added: "There is plenty of oil, we have no oil shortage. There is a huge surplus in the market.
"We are facing a temporary disruption, a logistical disruption."
It was reported this week that oil prices had risen as Iran took action to block the Strait of Hormuz, a key crude oil shipping route.
Brent crude prices increased by 3.2 per cent to $80 a barrel while the price of gas surged by 30 per cent on Tuesday.