Scenario planner and chairperson of the Anglo American chairman's fund, Clem Sunter, said on Wednesday that America starting a conflict with Iran was a "perfect storm" scenario that could usher in a $1000/barrel oil price and lead the world from recession into something worse.

"If the US goes into Iran, expect oil prices to go to $500-$1000 a barrel overnight," said Sunter.

"It could take R10 000 to fill your 4x4 — so life will change," he noted.

He said that this was now a very topical issue as the US had placed Iran on two weeks' notice and that these developments thus needed to be monitored very closely. He calls the current phase a "two week pipeline" during which Iran must climb down from their nuclear prgramme.

He said it was so important as 40 percent of the world's oil flows right past Iran.

"Keep it on your radar screen — this can decide the next years — a long-drop scenario like in the 30s and 40s," he said, noting that this was just a scenario that could happen should conditions change.

"We're moving into a tough world and we've all got to be prepared for that," said Sunter.

Sunter calls the potential military action a "perfect storm" coming on top of current recessionary global conditions brought about by the depressed US consumer.

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