Iranian Oil Minister says Attack on Iran Will Impact Oil Prices

Iranian Oil Minister Gholam Hossein Nozari says any attack on Iran will cause further turmoil in the already volatile crude oil market.

Speaking in Madrid, Spain on the sidelines of the World Petroleum Congress Wednesday, Nozari said Iran will react fiercely if attacked. However, he said his country would continue to supply the oil market.

Top U.S. military officer Admiral Michael Mullen said a hypothetical Israeli attack on Iran would be a high-risk move that could further destabilize the region.

Reports citing the possibility that Israel could attack Iranian nuclear facilities have raised concerns about future Middle Eastern oil supplies. The tension has contributed to a recent rise in the price of crude oil.

Prices rose above $142 a barrel during trading in New York today following a U.S. government report that U.S. oil inventories unexpectedly fell last week.

Prices are still below the record high of $143.67 per barrel, which was reached Monday.

Meanwhile, the retail price for gasoline in the United States has risen to a new record high. It now costs an average of $1.08 a liter ($4.09 a gallon) for fuel.

Some information for this report was provided by AFP, AP and Bloomberg.