Iran warns oil could hit $200 as ships attacked in Gulf
Synopsis
Iran warned oil prices could surge to $200 per barrel as its forces attacked merchant ships in Gulf waters, escalating the conflict with the U.S. and Israel and intensifying fears of major global upply disruptions.
Iran warned the world to prepare for oil prices reaching $200 per barrel as its forces targeted merchant ships in Gulf waters, intensifying the conflict with the United States and Israel. The attacks have heightened fears of major disruptions to global energy supplies moving through the Strait of Hormuz.
Key highlights
- Iran warns oil could reach $200 per barrel amid escalating war
- Three merchant vessels hit in Gulf waters on Wednesday
- Strait of Hormuz shipping disrupted, threatening one-fifth of global oil supply
- IEA proposes record 400 million-barrel strategic reserve release
- Oil prices rise nearly 5% as supply fears intensify
Iranian forces struck several merchant vessels in Gulf waters on Wednesday, escalating tensions in a conflict that began nearly two weeks ago after joint US and Israeli airstrikes on Iran.
Maritime reports said three ships were hit by projectiles, bringing the total number of vessels struck in the region to at least 14 since the war began.
Iran’s Revolutionary Guards said the targeted ships had ignored orders issued by Iranian forces operating in the Gulf.
Strait of Hormuz Shipping Disrupted
The Strait of Hormuz, a narrow waterway along Iran’s coast, has effectively become blockaded amid the conflict.
The route normally carries around one-fifth of the world’s oil supply, making it one of the most important energy transit corridors globally.
The disruption has slowed shipping traffic and increased concerns about potential supply shortages in global energy markets.
Oil Market Volatility Intensifies
The attacks have heightened fears that the conflict could trigger a prolonged disruption in global oil markets.
Crude prices have already experienced sharp swings, briefly approaching $120 per barrel earlier in the week before easing.
Analysts warn that continued attacks on shipping and energy infrastructure could significantly tighten global oil supply and drive prices higher.
Iran Warns Oil Could Reach $200
Ebrahim Zolfaqari, spokesperson for Iran’s military command, warned that the conflict could push oil prices sharply higher.
“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 Washington.
US President Donald Trump said American forces had inflicted significant damage on Iran’s military assets.
“They’ve got no navy, they’ve got no air force,” Trump said, adding that US forces were “riding free range” over the country.
Trump did not provide a timeline for ending the conflict and suggested operations could continue.
Oil Prices Jump Nearly 5%
Oil prices climbed nearly 5% on Wednesday as traders reacted to the renewed risks to shipping routes and energy infrastructure.
Both Brent crude and US West Texas Intermediate (WTI) futures posted strong gains during the session.
The surge in crude prices also weighed on financial markets, with Wall Street’s major indexes declining as investors assessed the economic impact of higher energy costs.
Strategic Reserves Proposed to Stabilise Markets
The International Energy Agency (IEA) recommended releasing 400 million barrels of oil from strategic reserves, the largest intervention in the agency’s history, to stabilise energy markets.
The United States endorsed the proposal, with Energy Secretary Chris Wright saying President Donald Trump authorised the release of 172 million barrels from the US Strategic Petroleum Reserve.
Shipments from the reserve are expected to begin next week.
However, analysts say the release represents only a small share of the oil volumes that normally move through the Strait of Hormuz.
Global Powers Consider Shipping Escorts
Global powers are now exploring measures to protect shipping routes in the Gulf.
The Group of Seven (G7) countries agreed to examine options for escorting vessels through the region to ensure safe passage.
Meanwhile, tensions remain high across the Middle East, with Iranian officials warning that economic and trade infrastructure could become targets if the conflict expands further.
FAQs
Q1. Why did Iran warn about $200 oil?
Iran said disruptions to regional security and energy flows could push global oil prices as high as $200 per barrel.
Q2. What happened to ships in the Gulf?
Three vessels were struck by projectiles, bringing the total number of ships hit since the conflict began to at least 14.
Q3. Why is the Strait of Hormuz important?
The waterway handles about 20% of global oil shipments, making disruptions there highly significant for energy markets.
Q4. How are governments responding?
The IEA proposed a record 400 million-barrel strategic reserve release, while G7 nations are considering escort operations for ships in the Gulf.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
