Oil markets are bracing for an even bigger potential price shock with Iran on Wednesday warning that crude could surge to $200 per barrel if the war involving the U.S. and Israel continues to destabilize the Middle East’s energy corridors.
Ebrahim Zolfaqari, spokesperson for Iran’s Khatam al-Anbiya military command headquarters, warned the world to “get ready for oil to be $200 a barrel,” arguing that regional security has been destabilized by the ongoing bombing campaign against Iran.
The $200 oil price tag warning follows a major Iranian drone strike on Wednesday on Oman’s largest oil storage facility.
Tehran also warned that no oil shipments will be allowed to pass through the Strait of Hormuz until the attacks stop, placing the world’s most critical oil chokepoint at the center of the escalating conflict.
The narrow waterway between Iran and Oman normally handles roughly 20% of global oil supply and a large share of LNG trade, making any sustained disruption a major threat to global energy markets.
Oil prices have already reacted violently to the growing risk. Brent crude briefly surged to around $120 per barrel earlier this week before retreating toward the $90 range after U.S. President Donald Trump suggested the conflict might end soon. Renewed attacks on shipping and infrastructure, however, have quickly revived fears of supply disruptions.
Security incidents across the Persian Gulf are continuing to mount. Maritime authorities and ship-tracking firms report a growing number of attacks on commercial vessels operating near the Strait of Hormuz, with several ships struck in the latest round of incidents.
Tanker movements through the region have already begun slowing as insurers and ship operators reassess the risks of transiting the corridor.
Energy analysts say the conflict is increasingly evolving into a direct confrontation over the Middle East’s oil supply network, with strikes now targeting ports, storage terminals, commercial shipping and export routes across the region.
By Charles Kennedy for Oilprice.com
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