Why oil could be headed to $200 a barrel, according to a former IMF economist

Oil tanker traffic stalls as the war in Iran reduces transit through the Strait of Hormuz.

Benoit Tessier/Reuters

• Oil prices have surged amid unprecedented supply disruptions from the war in Iran.
• Former IMF economist Olivier Blanchard said compounding risks suggest oil could hit $200 a barrel.
• Energy Secretary Chris Wright said this week he saw that scenario as unlikely.

Oil prices have climbed as the war in Iran rages on, but a former International Monetary...