Iran’s military command has warned that global oil prices could surge to $200 per barrel after three ships were attacked in the Strait of Hormuz, further escalating tensions in one of the world’s most critical oil transit routes.
The warning was issued on Wednesday by Ebrahim Zolfaqari, spokesperson for Iran’s military command, following renewed strikes in the region as the conflict involving Iran, Israel, and the United States intensifies.
The latest escalation comes as oil markets, which had rallied sharply earlier in the week, showed signs of stabilising in recent days as investors bet that the conflict could be resolved quickly.
However, renewed attacks in the Strait of Hormuz, a narrow passage along Iran’s coast that handles about one-fifth of global oil shipments, have revived concerns about fresh supply disruptions.
What they are saying
Zolfaqari warned that instability in the Middle East could drive oil prices significantly higher, blaming the United States and its allies for destabilising regional security.
According to him, disruptions to energy supplies would inevitably trigger a sharp spike in global crude prices.
- “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” Zolfaqari said in comments directed at the United States.
He also warned that Iran could target financial institutions in the region that maintain business ties with the United States or Israel.
After offices of a bank in Tehran were struck overnight, Zolfaqari said Iran would respond by attacking banks that conduct business with Washington or Tel Aviv and advised civilians to stay away from such facilities.
He warned residents across the Middle East to remain at least 1,000 metres away from banks that could become targets in the escalating confrontation.
Backstory
On Tuesday, Nairametrics reported that Iran’s Revolutionary Guards had threatened to block oil shipments from the Middle East if attacks by the United States and Israel continued.
The warning followed growing fears that the conflict could disrupt the Strait of Hormuz, one of the world’s most important energy corridors.
Although U.S. President Donald Trump had suggested that vessels passing through the strait could be escorted by the U.S. Navy, he also warned Iran against interfering with oil shipments from the region.
- “If Iran does anything that stops the flow of oil within the Strait of Hormuz, they will be hit by the United States of America 20 times harder than they have been hit thus far,” Trump wrote on Truth Social on Tuesday.
Despite the warning, tensions appear to be escalating.
Reuters reported on Wednesday that three additional vessels were struck by unidentified projectiles in the Strait of Hormuz, bringing the total number of ships hit in the region since the conflict began to at least 14.
What you should know
Oil prices have been highly volatile since the conflict escalated.
- On Tuesday, prices dropped to around $91 per barrel after surging to a more than three-year high in the previous trading session.
- The decline came after President Trump suggested that the war in the Middle East could end soon, easing investor fears of prolonged supply disruptions.
- Earlier in the week, crude prices had surged to above $119 per barrel, the highest level since mid-2022, amid concerns that tensions in the region could severely disrupt global oil supplies.
