Iran will not rule out using oil as a weapon if the United States resorts to military action over its nuclear programme, an Iranian oil official said in remarks published today.
"When the Americans say that military action in regard to the nuclear issue has not been put aside, Iran can also say that it will not put aside oil as a tool," Iran's Opec governor, Hossein Kazempour Ardebili, told Iran's Sharqnewspaper.
Washington says it wants a diplomatic end to a row over Iran's nuclear ambitions but has not ruled out force if that route fails. Iranian officials say they do not want to use oil as a weapon but have also said they might do so if pushed.
The United States accuses Iran of seeking to build atomic bombs, a charge Tehran denies.
"We will not start using this tool [of oil], but if others use their tools that they have not put aside to put pressure on negotiations, it is natural that the two sides would discuss all their tools," Mr Ardebili said.
Asked what would be the impact if Iran stopped its oil exports, he said: "Definitely the market will be faced with a new shock, and oil prices will increase strongly." He added that prices would climb above $100 a barrel.
Although Iran is Opec's second-ranked oil producer, it has to import about 40 per cent of its domestic gasoline needs to meet domestic demand for fuel because it lacks refining capacity.
Washington has described this as "leverage" in the nuclear row with Tehran.
Iran has said it will introduce gasoline rationing for motorists as part of efforts to reduce surging consumption, rising at about 10 per cent a year.