The world could see a 1970s like oil shock, prices could spike and lead to stagflation crisis, says Dr Doom economist Nouriel Roubini

The world could be looking at a major oil shock, in the case of Israel and Iran officially going to war, as per Nouriel Roubini, an economist who has been nicknamed 'Dr. Doom', for all the most interesting reasons.

Oil prices news: Dr. Doom shares shocking outlook on world economy

Roubini is known for his analysis and downbeat forecasts, predicting impending crisis quite accurately, and too, multiple times. Also known as Dr. Doom, Roubini has shared his insights around a major oil shock awaiting the entire world economy, which was last seen in the 1970s, and could happen yet again in the case a war broke out between Israel and Iran.

What could happen to oil prices if Israel and Iran go to war?

Iran is an oil-rich country, while Israel is strongly backed by the West, especially the United States. If they dive into a war-like scenario, Iran's oil trades with major foreign nations could be jeopardized, creating a major oil crisis, leading to a huge hike in crude oil prices across the world.


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Oil reserves could only be helpful for a certain period of time for different countries, but the prices of oil will most definitely increase in parts of South Asia as well as the United States and Europe, under such conditions.

Geopolitical tensions directly proportional to crude oil prices

The deteriorating geopolitical relations between countries, triggering a war-like scenario, has mostly affected oil trades in the Middle East and has influenced prices, as far as the legend goes for most parts of the world. It is yet to be seen how badly Iran makes its adversaries suffer, and also influence the oil market, when a war breaks out.

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FAQs:

What could be the situation around oil prices if Iran goes to war?
If Iran goes into a war-like situation with Israel or any other country for that matter, there are chances of a massive oil supply shortage, leading to a rise in crude oil prices.

Does Iran supply oil to the United States?
Crude oil is seldom supplied to the United States from Iran. In fact, the largest importer of Iran's oil supply in the world is China, which is US' rival nation, geopolitically.