Oil prices could rise as high as $150 a barrel because of the European Union's ban on imports of Iranian crude, Reuters quotes the country's deputy oil minister as saying.
"Although a precise prediction cannot be made on oil prices, it seems we will witness a $120 to $150 oil price per barrel in future," Deputy Oil Ministry Ahmad Qalebani said.
Benchmark Brent crude prices rose to around $111.50 a barrel on Friday on expectations Iran's parliament will vote to halt exports to the European Union as early as next week in retaliation for EU plans to stop all Iranian crude imports by July.
Escalating tensions between Iran and Western allies over Tehran's nuclear programme, including Iranian threats to close the vital Strait of Hormuz, have helped push up Brent crude prices by about $8 a barrel since mid-December.
But analysts say the world is likely to have more oil this summer thanks to additional output from Saudi Arabia, Iraq and Libya that will more than make up for any lost from Iran after the EU's ban is imposed on July 1 - and this is likely to be reflected in oil prices.
