10 Stocks Rallying as Oil Prices Surge
BOSTON (TheStreet) -- Rising oil prices are back on the front burner as one of the world's chief economic concerns, this time due to Iran's threat to cut off many of its biggest European customers, and that spells opportunity for some oil industry players.
Iran's saber-rattling has been going on for weeks, but over the weekend, the country's oil-ministry news Web site said the nation will cut supplies to the U.K. and France.
The European Union has been one of Iran's biggest markets, taking about 18% of its total exports last year.
Iran's threat comes in response to an embargo of Iranian oil that the 27-nation European Union agreed to last month, to begin in July due to Iran's efforts to build nuclear weapons.
Reuters reported Thursday that Iran's top oil buyers in Europe are already making substantial cuts in supply months in advance of the EU sanctions, and are planning to reduce inflows to the continent in March by more than a third.
And with Libya and Iraqi supplies still mostly off-line, the loss of Iran's supply will push oil prices ever higher worldwide.