Saudi Arabia warns oil prices could spike past $180 a barrel if Iran war rages on: report

Saudi oil officials said prices could soar past $180 a barrel if severe supply disruptions from the war in Iran last past April – potentially hammering foreign economies and the US as gasoline costs jump at the pumps.While it would mean big profits for a kingdom that leans heavily on oil revenues, it could also lead global consumers to slash oil use or trigger a recession, and there are also fears that it would cast Saudi Arabia as the profiteer of a war it didn’t start, officials told the Wall Street Journal.Brent crude reached $103 Friday as Iran’s blockade of the Strait of Hormuz disrupted the supply of millions of barrels, and attacks on critical Middle East energy infrastructure threatened to keep prices elevated for longer even if the conflict ends soon.US crude oil has eased away from Brent a bit this week, landing at $95 a barrel Friday, after the Trump administration announced a temporary pause on Russian energy sanctions, discussed possibly lifting penalties on Iranian oil and weighed another release of reserves.The US is the largest oil producer in the world, but it’s still vulnerable to global energy shocks – and a prolonged Middle East conflict could push Brent above its all-time high of $147, set in 2008, Goldman Sachs analysts warned in a note Thursday.“The persistence of several prior large supply shocks underscores the risk that oil prices may stay above $100 for longer in risk scenarios with lengthier disruptions and large persistent supply losses,” the analysts wrote.After striking Iran’s South Pars gas field, Israeli Prime Minister Benjamin Netanyahu agreed to Trump’s demand not to repeat attacks – as Tehran retaliated with strikes on key energy facilities in Qatar and Saudi Arabia, and ramped up attacks on ships in the Gulf.Energy Secretary Chris Wright has said there is “a very good chance” that gasoline prices – which hit $3.91 on Friday, per AAA – will be back below $3 by the summer, and oil experts have said that...