GLOBAL oil markets are on edge after Iran warned Wednesday that crude prices could spike to $200 per barrel if ongoing conflict involving the U.S. and Israel continues to destabilise Middle East energy corridors.
Spokesperson for Iran’s Khatam al-Anbiya military command headquarters, Ebrahim Zolfaqari, said the world should “get ready for oil to be $200 a barrel,” citing destabilisation caused by military strikes against Iran.
The warning follows a major Iranian drone attack on Oman’s largest oil storage facility, signaling Tehran’s readiness to target critical energy infrastructure, Oilprice.com reported.
Strait of Hormuz at the center of crisis
Iran also threatened to block all oil shipments through the Strait of Hormuz until attacks cease. The narrow waterway, situated between Iran and Oman, normally handles roughly 20 percent of global crude exports and a substantial portion of liquefied natural gas (LNG). Any sustained disruption would pose a major threat to global energy markets.
Market Reaction
Oil prices have already reacted sharply to the escalating tensions. Brent crude briefly surged to $120 per barrel earlier this week before retreating toward $90 following comments by U.S. President Donald Trump suggesting the conflict could end soon. Renewed attacks on shipping and infrastructure have quickly revived fears of supply disruptions.
READ ALSO: Iranian drones strike oil storage facility in Oman as Middle East crisis escalates
Maritime authorities and ship-tracking firms report a rising number of attacks on commercial vessels near the Strait of Hormuz. Tanker movements are slowing as insurers and shipping 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.
Implications for global energy, economy
Analysts say continued disruption could push crude prices toward or above $200 per barrel, raising fuel and energy costs worldwide. Higher energy prices would ripple through transportation, manufacturing, and household expenses, intensifying inflationary pressures.
Also, rising energy costs can reduce consumer spending and increase production costs, slowing economic growth globally. Industries dependent on oil and gas, such as shipping, aviation, manufacturing, could face delays and higher operational costs.
More so, investors may demand higher risk premiums for exposure to Middle East markets, increasing volatility in commodities, equities, and currencies. Energy experts say countries may accelerate moves to diversify energy sources or release strategic reserves, but these measures offer only short-term relief.
