(OPINION) It is being reported that Iran is seriously considering closing the Strait of Hormuz. We don’t know how high the price of oil will go if that happens, because it has never happened before.

Of course I think that it would be safe to assume that the price of oil would rapidly surpass the $100 mark, and if it stays there for an extended period of time that would be enough to push us into a recession all by itself.

But if the price of oil were to surpass the $200 mark and stay there, I believe that could be enough to actually push us into an economic depression.

Shockingly, as you will see below, there is one official in the Middle East that is convinced that the price of oil could go up to $300 a barrel if Iran closes the Strait of Hormuz. Needless to say, that would be a nightmare scenario.

All of this has been coming for a long time. As I documented on Friday, we were warned that the price of oil would go nuts once a major war erupted between Israel and Iran, and we were also warned that Israel would be blamed for the high price of oil because they struck first.

At the end of last week the price of oil was up about 5 dollars a barrel, but if the Strait of Hormuz gets closed that will send the price of oil into the stratosphere.

Unfortunately, we are being told that Iranian leaders are “seriously” considering making such a move…

The closure of the strategic Strait of Hormuz is being seriously reviewed by Iran, IRINN reported, citing statements by Esmail Kosari, a member of the parliament’s security commission.

The Strait of Hormuz, which lies between Oman and Iran, is the world’s most important gateway for oil shipping.

The Iranians understand that they can hold the global economy hostage, because approximately 20 percent of all global oil consumption travels through the Strait of Hormuz…

According to the US Energy Information Administration, about 20 percent of global oil consumption flows through the strait, which the agency describes as the “world’s most important oil transit chokepoint”.

At its narrowest point, it is 33km (21 miles) wide, but shipping lanes in the waterway are even narrower, making them vulnerable to attacks and threats of being shut down.

If the Iranians do this, most experts are anticipating that the price of oil will go well above $100 a barrel. But Iraqi Foreign Minister Fuad Hussein believes that the price of oil could actually rise as high as $300 a barrel…

Escalating tensions in the Middle East and a potential closure of the Strait of Hormuz could drive oil prices up to $300 per barrel, Iraqi Foreign Minister Fuad Hussein warned during a phone conversation with German Foreign Minister Johann Wadephul.

On Friday morning, Israeli jets bombed military and nuclear sites across Iran, kicking off an ongoing exchange of hostilities between the two countries.

According to Hussein, oil prices could surge to between $200 and $300 per barrel “if military operations were to break out, which would significantly increase inflation rates in European countries and complicate oil exports for producing states such as Iraq.”

I don’t think that we will see the price of oil go quite that high.

But if the price of oil even doubles from current levels, it will be a crippling blow for the global economic system.

And even if the Strait of Hormuz is not closed down, this war is going to push the price of oil much higher anyway.

After the Iranians started hitting major cities in Israel, the Israelis started going after Iranian energy infrastructure.

For example, we now have stunning video of fires at the Shahran oil depot in Tehran reaching into the night sky… CONTINUE