Oil could hit $150 a barrel if Iran conflict drags on, analyst warns

An international oil analyst has warned that global crude prices could climb past US$150 a barrel if the conflict involving Iran continues to escalate. The warning reflects growing unease in energy markets as the confrontation shows few signs of a swift resolution.

Analysts say the risk stems largely from Iran's proximity to the Strait of Hormuz, a chokepoint for a large share of the world's seaborne oil trade. Any disruption to shipping through the strait, whether through military action or insurance costs pricing out tankers, could tighten global supply quickly and push prices sharply higher.

A sustained jump to US$150 a barrel would raise fuel and transport costs for consumers and businesses far beyond the Middle East, including in New Zealand, where fuel prices already track international benchmarks closely. Analysts are watching diplomatic efforts and shipping traffic through the strait for early signs of how the price risk will play out.