by Tim Mullaney - Mar. 22, 2012 11:59 AM
USA Today

Gas prices could spike on Iran action in Hormuz

Gas prices could double if Iran acts to close the Strait of Hormuz to oil-tanker traffic near the beginning of next year, cutting global economic growth by more than 25%, a leading energy-consulting firm said Wednesday.

Iran lacks the military might to close the strait for long, but it may be able to disrupt global oil supplies for up to three months by laying mines in the six-mile wide passage that the U.S. and its allies would have to find and remove, analysts at IHS Global Insight said on a conference call with reporters. About 17 million barrels of oil a day pass through the strait, or nearly 20% of the global market.

Crude oil prices could briefly hit $240 a barrel in the first quarter of 2013, said Sara Johnson, senior research director for Global Economics at IHS. Brent crude, the benchmark European oil which IHS uses a proxy for global prices, closed at $124.20 in London Wednesday. In the U.S., West Texas Intermediate, the benchmark U.S. crude oil, closed at $107.27 a barrel....

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... Consumers could end up spending an extra $145 a month for gasoline, ...

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