Iran tells world ‘get ready for US$200 a barrel’

DUBAI/TEL AVIV — Iran’s military command warned on Wednesday that global oil prices could surge to as high as US$200 per barrel as attacks on ships in the Gulf and continued fighting across the Middle East threaten one of the world’s most critical energy corridors.

The warning came after three additional merchant vessels were struck by projectiles in the blockaded Gulf, raising the number of ships reportedly hit since the conflict began to 14, according to maritime security monitoring agencies.

Iran’s military spokesperson, Ebrahim Zolfaqari, said escalating tensions and instability in the region could drive energy prices sharply higher. “Get ready for oil be US$200 a barrel, because the oil price depends on regional security which you have destabilised,” Zolfaqari said, addressing the United States.

The remarks came as the war between Iran, the United States, and Israel continued to intensify nearly two weeks after large-scale airstrikes began on Feb. 28. Despite heavy bombardment described by the Pentagon as the most intense strikes yet against Iran, Tehran demonstrated it still retains the ability to retaliate and disrupt energy supplies across the region.

At the center of global concern is the Strait of Hormuz, the narrow waterway along Iran’s coast through which roughly one-fifth of the world’s oil supply normally passes. Shipping through the passage has effectively been halted, marking the most severe disruption to global energy flows since the oil shocks of the 1970s.

Although oil prices briefly spiked to nearly US$120 per barrel earlier this week, they later eased to around US$90, reflecting investor expectations that U.S. President Donald Trump may seek a rapid end to the conflict he launched alongside Israel.

However, fighting on the ground and at sea has shown no signs of easing. Iran continued missile and drone attacks on regional targets while airstrikes and missile exchanges were reported across several countries.

In one of the latest incidents at sea, crews were evacuated from a Thai-flagged bulk carrier after an explosion triggered a fire on board. A Japan-flagged container ship and a Marshall Islands-flagged bulk carrier were also damaged in separate attacks.

The conflict has also extended to financial and civilian infrastructure. After offices of a bank in Tehran were hit overnight, Zolfaqari warned that Iran could retaliate by targeting banks that conduct business with the United States or Israel. He advised civilians to remain at least 1,000 meters away from bank buildings across the region.

Meanwhile, Israeli officials acknowledged privately that Iran’s governing system could survive the war despite the ongoing military campaign, according to a senior Israeli official cited by Reuters. Other Israeli officials said there was no indication that Washington was close to ending the conflict.

Inside Iran, massive funeral processions were held Wednesday for top military commanders killed in recent airstrikes. Large crowds carried coffins and waved flags and portraits of former Supreme Leader Ayatollah Ali Khamenei and his son and successor, Mojtaba Khamenei.

An Iranian official told Reuters that Mojtaba Khamenei was lightly injured early in the war during an airstrike that reportedly killed his father, mother, wife and one of his sons. The 56-year-old leader has not appeared in public or issued a direct statement since the conflict began.

Iran’s military also said it had launched missile strikes on a U.S. base in northern Iraq, the U.S. naval headquarters for the Middle East in Bahrain, and targets in central Israel. Explosions were reported in Bahrain, while two drones crashed near Dubai International Airport, injuring four people.

Residents in Tehran described adapting to frequent nightly airstrikes that have driven hundreds of thousands of people out of the capital while smoke from burning oil facilities has reportedly polluted the air.

“There were bombings last night but I did not get scared like before. Life goes on,” said Farshid, a 52-year-old resident who spoke to Reuters by phone.

Amid the escalating crisis, governments are weighing emergency measures to stabilize global energy markets. The International Energy Agency is expected to recommend releasing 400 million barrels of oil from strategic reserves worldwide — a record amount — though analysts note the supply would only equal about three weeks of normal shipments through the Strait of Hormuz.

U.S. and Israeli officials say their objective is to eliminate Iran’s ability to project military force beyond its borders and dismantle its nuclear program. At the same time, both countries have encouraged Iranians to challenge the nation’s clerical leadership.

Israeli Defense Minister Israel Katz said the military operation would continue indefinitely.

“The operation will continue without any time limit, as long as required, until we achieve all objectives and win the campaign,” Katz said Wednesday.

Iran has responded by declaring that it will not allow oil shipments through the Strait of Hormuz until U.S. and Israeli attacks cease, and that it will not enter negotiations under current conditions. President Trump has warned that the United States would strike Iran “twenty times harder” if the blockade continues, though Washington has not publicly detailed any plan to reopen the strait.

Elsewhere in the region, Israel launched new strikes on Beirut targeting the Iran-backed militant group Hezbollah, which has been firing rockets into Israel in support of Tehran.

The human toll of the conflict continues to rise. Iran’s ambassador to the United Nations, Amir Saeid Iravani, said more than 1,300 Iranian civilians have been killed since the airstrikes began. Israeli attacks in Lebanon have also left dozens dead.

Iranian missile strikes on Israel have killed at least 11 people, while two Israeli soldiers have died in fighting in Lebanon. The United States said seven of its soldiers have been killed and around 140 others wounded since the start of the conflict.

With reports from Reuters