Iran warns oil could reach $200 amid Hormuz tensions

Shafaq News- Tehran

Global oil prices could surge to $200 per barrel, the Iranian military warned on Thursday, as the war between the United States and Israel on one side and Iran on the other entered its 13th day.

In a statement, Ebrahim Zolfaghari, spokesperson for Iran’s Khatam al-Anbiya Central Headquarters —the command body coordinating the country’s armed forces— blamed Washington for destabilizing regional security, arguing that oil prices depend on stability in the Middle East.

Several governments have meanwhile begun releasing emergency reserves in an effort to calm markets. US Energy Secretary Chris Wright announced that Washington will release 172 million barrels from its Strategic Petroleum Reserve, while Italy will contribute nine million barrels from its strategic stocks, according to a government source cited by Reuters.

French President Emmanuel Macron, in televised comments, also confirmed that France will release up to 14.5 million barrels from its reserves, following a recommendation by the International Energy Agency (IEA) for member states to inject a combined 400 million barrels into global markets.

The conflict that erupted on Feb. 28 following joint US and Israeli strikes on Iran continues to disrupt energy flows through the Strait of Hormuz —one of the world’s most critical oil corridors, through which roughly one-fifth of global crude shipments normally pass. Iranian military officials have previously warned that vessels seeking to cross the strait must obtain Tehran’s approval, with Zolfaghari vowing that Iran would not allow “even a single liter of oil” to pass through the waterway for the United States and its allies.

Read more: Hormuz lockdown: Iraq’s economic lifeline under threat