Iran shot American Drone- Not Good For Inflation- crude will Double $250

Iran has shot down an American drone aircraft in eastern Iran, the country’s state television said Sunday, citing a military source, according to media reports.

Iran’s military response to the U.S. “spy drone’s violation of our airspace will not be limited to Iran’s borders,” the military source reportedly said.

Tehran could retaliate with hit-and-run strikes in the Gulf and by shutting the Strait of Hormuz, a strategic waterway through which about 40% of all traded oil departs the Gulf region, analysts told Reuters.

Iran is looking to curb the fallout from the storming of the British embassy in Tehran last week, which came as the United States and European Union nations were already considering measures to restrict Iran’s crude exports over Iran’s disputed nuclear program.

Iran on Sunday cautioned the West against any attempt to halt its oil exports, saying the price of crude could more than double as a result.

“As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel, an Iranian Foreign Ministry spokesman said in a newspaper interview, Reuters reported.