The IMF warned that if the West imposed financial sanctions on Iran, it would be tantamount to an oil blockade, and the shock to the market could be as bad as from Libya's revolution last year.
Iran produces 5% of global oil output.
The market is already pricing in a small risk of an escalation of tensions between Iran on the one hand, and the US, Europe and Israel on the other, according to the IMF's estimates.ran is the world's fifth-largest oil producer, extracting 3.5 million barrels a day. Other members of the Organisation of Petroleum Exporting Countries (Opec) have some 3.8 million barrels in spare capacity that could eventually be made available. READ original BBC LINK
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