WASHINGTON (Pakistan Point News / Sputnik - 09th February, 2022) Iran-type sanctions on Russia's oil supply would likely lead to a substantial spike in prices and global supply chain disruptions, S&P Global Ratings said on Tuesday.
The United States and its European partners have mulled sanctions targeting Russia's energy supplies over the situation in Ukraine and the Biden administration has recently been encouraging major energy producers to increase production.
"Iran-type sanctions on Russia's oil exports would likely cause a global energy crisis with prices going well above $100 per barrel and disruption to global supply chains," S&P Global Ratings said in a report.
A complete shutoff of Russian gas supply to the European Union could result in an energy crisis in Europe which would also impact global markets, the report said.
According to US media, sanctions on Russian energy is off the table for now.
On Monday, President Joe Biden said his administration is looking into developing alternative energy supplies for Europe to make up for the potential loss of gas from Russia due to possible sanctions imposed by the West over the Ukraine situation. He added that his team thinks they can make up a significant portion that would be lost.
