Tougher economic sanctions may be imposed later this summer if Libyan leader Muammer Qadaffi fails to hand over the two suspects in the December, 1988, bombing of Pan American World Airways Inc. Flight 103 over Lockerbie, Scotland, say U.S. officials. Among the options now under consideration are an embargo on Libyan crude and a ban on exports of high-tech oil-field equipment to the North African country.

Shutting off Libyan oil would run the risk of driving prices from the current level of $21 a barrel to the $25-a-barrel range, according to Ann-Louise Hittle, an analyst at Shearson Lehman Brothers Inc. Libya is a major supplier of hard-to-replace light, sweet crude to Western Europe. The country furnishes 28% of Italy's oil and 16% of Germany's.

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