From The Guardian UK
Prices climb ahead of critical week as nuclear row escalates. Opec says it won’t increase quotas to cover for production shutdown

Heather Stewart

Oil markets are braced for a nail-biting week, as world leaders demand action against Iran over its nuclear ambitions, and analysts warn that crude prices could reach $90 a barrel if the oil-rich state retaliates by blocking supplies.
The International Atomic Energy Agency meets on Thursday to decide whether to refer Iran to the United Nations Security Council. Mahmoud Ahmadinejad, Iran’s president, has threatened to respond to any punitive action by cutting off the 2.6 million barrels of oil a day it pumps into the markets - 5 per cent of the world’s supply.

Kona Haque, commodities editor at the Economist Intelligence Unit, said the worst case scenario of a shutdown of supplies from Iran would be ‘absolutely devastating … I wouldn’t be surprised to see the price go over $90 a barrel’. She said fears about Iran are already adding a $10 risk premium to oil prices, which could remain in place for months as the crisis escalates.

Read More Oil