Lecturer: Iran Oil Embargo Will Trigger Unprecedented Global Inflation

Beirut, Jan 9, IRNA – Professor of economics at American University of Beirut Kamel Wazne said on Sunday that ban on Iran’s oil products will dramatically increase crude oil price to dlrs 250 per barrel triggering an unprecedented global inflation. The economic analyst from the American University of Beirut said if Iranian officials fulfill their promise and manage to close Hormuz Strait in the event of an oil embargo, the world will face an economic catastrophe. “If Iran blocks passage of oil from Hormuz Strait, the price of crude oil would exceed dlrs 250 per barrel,” he said. Imposing oil embargo against Iran is very unlikely, he said and described the threats to this effect as unreal because such event will inflict heavy losses on all oil exporting countries in the Persian Gulf region. Economic sanctions have no justifications from economic, financial, humanitarian and international points of view, he said, adding that all are well aware of the fact that the economic index in the New Year is very disappointing and such measure would lead to economic meltdown of the European Union. The US is now facing an acute economic crisis and other developing countries such as China and Brazil could not be an exception, he said. This oil price hike will increase global inflation by ten percent, he said. There is no doubt that the Islamic Republic of Iran has attained self-sufficiency in meeting its domestic demands and the US or any other western powers cannot create any obstacle to the country’s economic development, he said. Iran is powerful enough to protect itself from consequences of economic embargoes but the West's economic infrastructure will be the end loser, he said. According to director general of International Monetary Fund (IMF) the European countries under Euro zone along with the US will face a very serious economic meltdown in 2012 and consequently the world cannot tolerate such risks and threats as they will lead to explosion of prices, he said. Rate of unemployment in the US is about 18 percent and some 49 million people are now living under poverty line, he said, adding that other charges such as US recent war in Afghanistan and Iraq along with its support for the banks that are on the verge of bankruptcy should be taken into consideration. The US debts now stands dlrs 14.2 billion which is expected to rise to dlrs 16 billion in the New Year, he said, adding that imposing economic sanctions against Iran will be harmful to the global economy and it seems very unlikely for the United Nations Security Council to endorse it. /end