Iran Warns Oil Could Hit 200 Dollars a Barrel

Iran has warned that global oil prices could surge dramatically as tensions in the Middle East continue to escalate. Ebrahim Zolfaghari, spokesman for Iran’s Joint Chiefs of Staff, said the international community should prepare for the possibility of crude reaching USD 200 per barrel. Addressing the United States and Israel, he argued that instability in the region is directly linked to the security situation they have helped create.

Zolfaghari also signaled that Iran may intensify its military response, moving from limited retaliatory strikes to sustained attacks against its adversaries. He warned that Washington would not be able to control the consequences for global energy markets. According to the Iranian official, Tehran will seek to prevent oil supplies from reaching the United States, Israel and their allies. Any ship or tanker heading toward those destinations, he said, could be treated as a legitimate target.

Energy markets have already reacted sharply to the conflict. On Monday, the price of US crude climbed above USD 119 per barrel, marking the highest level since June 2022. The spike has also been felt in the United States at the pump. The American Automobile Association reported that the average price of gasoline rose by 55 cents to around USD 3.54 per gallon, equivalent to roughly 3.78 liters. The nearly 19 percent increase pushed the national average above USD 3.50 for the first time since July 2024.

Despite the increase, fuel in the United States remains cheaper than in many European countries. According to DPA, this is largely due to lower tax rates and the country’s domestic oil production, with the equivalent price standing at about 81 euro cents per liter. Even so, gasoline costs remain a politically sensitive issue in the US, particularly with congressional midterm elections approaching in November. During his election campaign, President Donald Trump pledged to expand fossil fuel production, including oil and coal, in an effort to reduce energy costs for American consumers.

Since the outbreak of the conflict, the US administration has been exploring ways to boost global supply, including easing sanctions on Russian oil exports. White House spokeswoman Caroline Levitt said the current rise in oil and gasoline prices is expected to be temporary.

Oil markets have continued to fluctuate sharply. Reuters reported that prices moved on Tuesday following news that the International Energy Agency is considering the largest release of strategic oil reserves in its history. Early Wednesday trading reflected mixed movements, with Brent crude futures slipping by 27 cents, or 0.36 percent, to USD 87.50 per barrel, while US light crude rose by 28 cents, or 0.35 percent, reaching USD 83.58 per barrel.

According to The Wall Street Journal, the proposed release could exceed 182 million barrels of oil, surpassing the combined volumes released by IEA member states during two emergency operations in 2022 after Russia launched its full-scale invasion of Ukraine. Analysts at Goldman Sachs estimate that a release of that size could offset roughly 12 days of disruption to oil exports from the Persian Gulf, currently projected at around 15.4 million barrels per day.

The ongoing conflict has also disrupted maritime traffic through the Strait of Hormuz, one of the world’s most critical energy corridors. Normally, about one-fifth of global oil shipments pass through this route, and the uncertainty surrounding its security has contributed to rising fuel prices worldwide.