Oil prices could surge dramatically as tensions escalate in the Middle East, with Iran warning that crude may rise sharply after its forces targeted merchant vessels in the Gulf.
Iran on Wednesday said the world should prepare for a $200 oil price as the conflict in the region intensifies. Iranian forces reportedly attacked commercial ships near the Strait of Hormuz, a crucial global shipping route that carries a significant share of the world’s oil supply.
The attacks come amid ongoing military confrontations involving Iran, the United States and Israel. Tehran has also launched strikes at targets across the Middle East, demonstrating that it still has the capacity to retaliate despite heavy bombardment from its adversaries.
Global energy markets have reacted nervously to the developments. Oil prices had surged earlier in the week, briefly approaching $120 per barrel before easing to around $90 as investors speculated that diplomatic efforts might end the conflict quickly.
However, Iranian officials warned that continued instability could drive a $200 oil price if the crisis deepens. Ebrahim Zolfaqari, spokesperson for Iran’s military command, said the surge in prices would be a direct result of security disruptions in the region.
He accused the United States of destabilising the Middle East, saying the oil market depends heavily on regional stability.
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Meanwhile, shipping through the Strait of Hormuz has been severely disrupted, with fears that vessels may no longer be able to pass safely through the narrow channel. The waterway handles roughly one-fifth of the world’s oil shipments, making it one of the most critical routes for global energy supply.
To help stabilise the market, the International Energy Agency has recommended releasing about 400 million barrels of crude from strategic reserves. The proposal, which has been backed by Washington, would mark the largest coordinated release of emergency oil stocks in history.
Despite these measures, analysts warn that continued attacks on shipping and prolonged fighting could push crude prices much higher, raising concerns about a possible $200 oil price and its impact on the global economy.