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03:31
Restriction of oil supply would drive up prices
If Iran were successfully to block access to the Strait of Hormuz, the price of crude oil would almost certainly rise dramatically.Following a mistaken report that the strait had already been closed, the oil price jumped by $2, to over $100 a barrel. Although it then fell back, the price is set to rise even if the Strait of Hormuz remains open, as sanctions on Iran and Syria restrict the global supply.The ongoing uncertainty is set to make 2012 another volatile year for the oil markets, following the disruption to supplies caused by the Arab Spring throughout 2011.
