World oil prices could triple if the West's stand-off over Iran's nuclear programme escalates into conflict, the Saudi Arabian government has warned.
The Saudi ambassador to the US has said that such an event could send prices spiralling from their current level of about $70 per barrel.
Iran is the Opec cartel's number two oil producer and analysts fear it could halt exports if the dispute worsens.
Tehran is currently examining proposals aimed at ending the diplomatic impasse.
"The idea of somebody firing a missile at an installation somewhere will shoot up the price of oil astronomically," Prince Turki, the Saudi Ambassador told a conference hosted by the United States Energy Association.
He warned that any conflict involving Iran would threaten the Strait of Hormuz, through which most Middle East nations export their oil.
Tankers carry 17 million barrels of oil through the Strait of Hormuz every day, according to the International Energy Agency.
Geopolitical uncertainties, particularly the West's nuclear dispute with Iran and output disruptions that may come about if Iran stops its supply of oil to the international community or block the Strait of Hormuz, will create tremendous consequences to the already volatile oil markets.
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