The war across the Middle East now threatens to shake up the global energy market. Iran has issued a stark warning that crude oil prices could surge to $200 a barrel as shipping routes through one of the world’s most important oil corridors remain under serious threat. Iran has continued to fire missiles and drones at U.S. military bases in Israel and across the Middle East.
Iran’s military command said the world must brace for a surge in oil prices. Ebrahim Zolfaqari, a spokesman for Iran’s military command, took aim at the United States and said, "Be prepared for oil to hit $200 a barrel, because oil prices depend on the security of the region you have destabilized.”
Ebrahim Zolfaqari also warned that Iran would shift from limited “reciprocal attacks” to sustained, merciless attacks on Israel and the United States.
Senior military spokesman Abolfazl Shekarchi said on state television that if Iran’s ports and docks were attacked, "all ports and docks in the region will become our legitimate targets.”
According to Iranian state media, Prime Minister Abolfazl Shekarchi also dismissed claims that Islamic Revolutionary Guard Corps ships were stationed at Iran’s economic ports.
Iran’s warning comes as the war between Israel and the United States continues to escalate, with missiles, drones and naval attacks disrupting shipping through the Strait of Hormuz, a narrow maritime passage that carries about a fifth of the world’s oil supplies.
As attacks on shipping increased, the strait was effectively blockaded. Two ships were recently attacked by Iranian forces in the Strait of Hormuz, according to a statement from the Islamic Revolutionary Guard Corps reported by Iran’s state-run Fars news agency.
Meanwhile, 20 crew members of a Thai ship hit by an unidentified projectile were rescued, the Thai Ministry of Transport said. As the security situation worsened, shipping companies began stopping ships or changing routes. Hundreds of oil tankers have been forced to remain anchored in surrounding waters as insurers and operators reassess the risks of transiting the passage.
IEA releases 400 million barrels of oil
The International Energy Agency has already agreed to release 400 million barrels of oil from strategic reserves to stabilize the market. This is the largest coordinated release in history.
This exceeds the 182 million barrels released by member countries in 2022 after Russia’s full-scale invasion of Ukraine. The proposal will be discussed at the G7 summit chaired by France.
Global markets are bracing for impact
Iran has repeatedly warned that further U.S.-Israeli attacks could spark a broader economic war across the region. Islamic Revolutionary Guard Corps commander Ebrahim Jabbari previously said Tehran would retaliate against its economic infrastructure if its strategic facilities were targeted.
“We are telling the enemy that if they decide to attack our main centre, they will attack all economic centers in the region,” Ebrahim Jabbari said.
“We have closed the Strait of Hormuz. Oil prices are now over $80 and will soon reach $200.”
Oil prices surged above $120 a barrel earlier this week, but have since stabilized slightly and stock markets have recovered some of their losses. But energy experts warn that prolonged chaos in the Strait of Hormuz could quickly reverse this calm and trigger a serious supply crisis.
– end
Based on the agency’s opinion
tune the frequency