Oil prices could surge if Iran crisis worsens

0 Comments | AFP, June, 2009

LONDON (AFP) — World oil prices have so far not been pushed up much by post-election violence in key crude producer Iran -- but they could spike higher if the situation deteriorates, analysts have warned.

Iran has ruled out cancelling the disputed presidential June 12 vote as the international community voices increasing alarm at a violent crackdown on opposition demonstrators.

The Islamic republic produces about 3.8 million barrels of crude oil per day and is the third biggest global oil exporter after Russia and Saudi Arabia.

Analysts fear the biggest crisis since the 1979 revolution could force the Iranian government to cut off oil supplies or block the Strait of Hormuz -- a crucial passageway for oil tankers.

"There could be a rude awakening (for the oil...