Iran’s Islamic Revolutionary Guard Corps warned Wednesday that global oil prices could surge to $200 per barrel as the Strait of Hormuz—the key route for a large portion of the world’s exported oil—remains shut during the ongoing U.S.-Israeli military campaign against Iran.

The warning came from Ebrahim Zolfaqari, a spokesperson for the IRGC’s Khatam al-Anbiya Central Headquarters, who blamed the conflict for threatening stability in global energy markets.

“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilized,” Ebrahim Zolfaqari, a spokesperson for the IRGC’s Khatam al-Anbiya Central Headquarters, told Reuters.

Tensions in the region escalated further after the U.S. military announced Tuesday that American forces had destroyed 16 vessels used to lay naval mines near the Strait of Hormuz. Iranian officials have since warned that vessels connected to the United States or Israel could be targeted, with the IRGC stating that such ships “will be considered a legitimate target,” according to Al Jazeera.

Energy markets have already shown sharp volatility. West Texas Intermediate crude, the main benchmark for North American oil prices, is currently trading near $87 per barrel. Earlier this week, however, the price spiked to nearly $120. Meanwhile, the national average cost of gasoline in the United States has climbed to $3.57 per gallon, according to data from AAA.

In response to rising energy prices triggered by the conflict, the International Energy Agency announced that its 32 member nations will release 400 million barrels of oil from strategic reserves in an effort to stabilize global markets.

“This is a major action aiming to alleviate the immediate impacts of the disruption in markets,” Fatih Birol, executive director of the IEA, said in an address from Paris. “But to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.”

Birol said the emergency reserves would be distributed gradually in a way that fits the needs and timelines of participating countries. Among the nations that have already indicated they will take part are Japan, Germany, and the United Kingdom.

The United States has not yet announced whether it will contribute oil from its own strategic petroleum reserve.

President Trump previously criticized a decision by President Joe Biden to release 180 million barrels from U.S. strategic reserves following Russia’s invasion of Ukraine in 2022. Trump argued that those reserves should be preserved for military needs rather than used to bring down fuel prices.

Trump has also downplayed the significance of rising fuel costs during the current conflict, saying that higher gasoline prices are a “very small price to pay” as the administration continues its military campaign against Iran.

The president has offered varying estimates about how long the fighting might continue. At one point he suggested the war could last as long as five weeks, though on Monday he said the conflict would end “very soon.” On Tuesday, Trump said the U.S. “excursion” in Iran was “nearly complete.”

{Matzav.com}