Guinness: Iran threat could prompt $150 oil price spike

Managers of the Guinness Global Energy fund have warned of an oil price spike to $150 per barrel if Iran were to carry out its threat of closing the Strait of Hormuz and blocking 15% of global oil exports.

The price of Brent Crude jumped by roughly $5 today to an eight-month high of $111.65 per barrel as investors reacted nervously to the news. The US and its allies are threatening to increase pressure to halt what they say may be a covert nuclear-weapons programme in the region, prompting speculation over Iran's reaction. "We would be naive not to factor in the risks that military action in Iran would raise the price of oil," said co-manager Tom Nelson. "The exports transported through the Strait of Hormuz are equivalent to two Saudi Arabia's or two Russia's, so the potential impact...