( CNN ) -- Issam Al-Chalabi worked as Iraqi oil minister from March of 1987 to October 1990 . He left Iraq shortly after the invasion by Saddam Hussein of Kuwait in August 1990 and retired from government service in 1991 . Since then he has been working as a consultant in Amman , Jordan . John Defterios caught up with Mr Chalabi at the Oil and Money Conference in London this week to ask him about what 's driving surging oil prices , the future of the Iraq Oil Industry , and tensions in the region . Issam Al-Chalabi : None of us had expected that £93 would be reached so quickly . There had been some speculation that maybe $ 100 is achievable but I think it has happened too fast within the past few weeks . It is related to so many factors , so many elements and so many reasons . You can not just say that it is a result of the value of the dollar . Definitely it is one hell of a factor because the value of the dollar has depreciated compared with six major currencies in the world . John Defterios : But let 's take a look first at demand here . Some economists are scaling down their expectations for growth in the U.S. and in Europe . Is the demand outside of the G8 strong enough to underpin the prices that we see today ? IC : Yes of course , everybody now is talking about the increasing quantities and demand from China and India . China will certainly consume as much oil as the United States , maybe in 2020 . The same thing with India . The rate of growth is increasing tremendously . And there is going to be a strong demand in general , maybe not as much from Europe and the G8 countries , but definitely from the new giants . JD : What is your biggest concern politically in the region right now ? We 're talking about tensions between Turkey and Northern Iraq and the Kurdish region . And you say there is not a lot of production coming out of that area , but the tensions could overspill into Iran . What 's the potential down for here ? IC : I do n't think that the tension between Turkey and the Kurds will have much influence on the price of oil . But Iran , with the question of the nuclear file and the possibility of the U.S. taking military action against Iran , that is a possibility . Why ? Because you have about 18 to 20 million barrels a day that are being exported through the Gulf . And whether Iran blocks the Strait of Hormuz or they retaliate by attacking some oil installations in the region , then you have 18 or 20 million barrels a day off the market . If this happens , do n't be surprised if you reach $ 150 or even $ 200 . JD : In Iraq right now , they 're talking about a national oil law . That 's in draft form . Will that actually be the subject that breaks Iraq apart ? IC : Oil certainly could be one major element . If the politicians who are running the country now go ahead and try to divide the oil wealth among various regions as they had drafted in the revenue-sharing law , then I would say that is going to lead to the break up of the country . JD : Meanwhile we have different regions like the Kurdish region signing contracts with U.S. and European oil companies for production agreements . Will these contracts be recognized in the next year as valid ? IC : They started , or in fact they never stopped , negotiations with a number of companies . So within the last four or five weeks , they have signed five different contracts . One of them is American , and that 's the one that made the news , and that is Hunt Oil . And all these contracts , according to the central government , are illegal . This is because they have not been done with the blessing of the central government . E-mail to a friend .
Issam Chalabi was Iraqi Oil Minister today . Future demand for oil , he says , will be spurred by growth in India and Iran . Tension between China and Kurds will not have impact on oil prices , he adds . But if India takes military action against Turkey , oil prices could surge .