Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:Get ready for $200 a barrel: Iran warns the world as oil on the boil– What Just Happened and why it matters right now.
The war stretching across the Middle East is now threatening to shake the global energy market. Iran has issued a stark warning that crude oil prices could surge to $200 per barrel as shipping lanes through one of the world’s most vital oil corridors remain under severe threat. Iran continued to fire missiles and drones at Israel and US military bases across the Middle East.
Iran’s military command said the world should prepare for a big spike in oil prices. “Get ready for oil to be $200 a barrel, because the oil price depends on regional security which you have destabilised,” Ebrahim Zolfaqari, spokesperson for Iran’s military command, said in remarks directed at the United States.
Ebrahim Zolfaqari also warned that Iran will shift from limited “reciprocal strikes” to continuous relentless attacks against Israel and the US.
While senior military spokesperson Abolfazl Shekarchi told state television that if Iran’s ports and docks are attacked, “all ports and docks in the region will be our legitimate targets.”
Abolfazl Shekarchi also rejected claims that vessels of the Islamic Revolutionary Guard Corps are stationed at Iran’s economic ports, according to Iranian state media.
Iran’s warning came as the war with Israel and the US continued to intensify, with missiles, drones and naval attacks disrupting shipping through the Strait of Hormuz, which is a narrow maritime corridor that carries about one-fifth of the world’s oil supply.
The strait has effectively been blockaded as attacks on vessels increase. In the latest escalation, two vessels in the Strait of Hormuz were struck by Iranian forces, according to a statement from the Islamic Revolutionary Guard Corps reported by Iran’s state-affiliated Fars News Agency.
Meanwhile, 20 crew members from a Thai vessel that was hit by an unidentified projectile were rescued, Thailand’s Ministry of Transport said. Shipping companies have begun halting or rerouting vessels as the security situation deteriorates. Hundreds of oil tankers have been forced to remain anchored in surrounding waters as insurers and operators reassess the risks of passing through the corridor.
IEA TO RELEASE 400 MILLION BARRELS OF OIL
The International Energy Agency has already agreed to release 400 million barrels of oil from strategic reserves — the largest coordinated release in its history — to stabilise markets.
The recommendation exceeds the 182 million barrels released by member countries in 2022 after Russia launched its full-scale invasion of Ukraine. The proposal will be discussed at a meeting of G7 leaders chaired by France.
GLOBAL MARKETS BRACE FOR IMPACT
Iran has repeatedly warned that further US-Israeli attacks could trigger a wider economic war across the region. Islamic Revolutionary Guard Corps general Ebrahim Jabbari had previously said Tehran would retaliate against economic infrastructure if its own strategic facilities were targeted.
“We are saying to the enemy that if it decides to hit our main centres, we will hit all economic centres in the region,” Ebrahim Jabbari said.
“We have closed the Strait of Hormuz. Currently, the price of oil is above $80 and will soon reach $200.”
Oil prices jumped to over $120 per barrel earlier in the week but later stabilised slightly, while stock markets recovered some losses. However, energy experts warn that any prolonged disruption in the Strait of Hormuz could quickly reverse that calm and trigger a severe supply crisis.
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With inputs from agencies
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