Prince Turki al-Faisal, the Saudi Arabian Ambassador to the United States, gave warning that military conflict could send oil prices spiralling, amid fears that the country could halt exports if the stand-off with the West continued.

“You could see (oil prices) perhaps double or triple as a result of the conflict”, Prince Turki said, speaking to the United States Energy Association.

Iran is Opec’s second-largest oil producer, raising fears in recent months that any military action could prompt the country to cut off oil exports and seriously threaten supplies to the West.

“The idea of somebody firing a missile at an installation somewhere will shoot up the price of oil astronomically," Prince Turki said.

The threat of conflict in Iran has underpinned oil prices in recent months, with prices in New York and London fluctuating about the $70 mark. The price edged closer to $70 in London yesterday amid continuing fears over supplies and news of a lower than expected rise in US petrol supplies. US light crude for August was up 96 cents at $70.30 in intraday trading. London Brent crude closed up 82 cents at $68.90.

However, despite fears that a war could act as a stimulus for further gains, Sam Bodman, the US Energy Secretary, says that America could withstand any weakening of supply from Iran, meeting the shortfall with its own stockpiles of oil.

Prince Turki gave warning that the implications of military action went further than supplies from Iran itself. He said that conflict involving Iran could have an impact on the Strait of Hormuz, a channel between Iran and the United Arab Emirates through which producers transport 17 million barrels of oil a day to the West.

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