Iran warned the world to brace for oil at $200 a barrel as its forces struck merchant ships in Gulf waters and threatened prolonged disruption to global energy supplies amid an intensifying conflict with the United States and Israel.
Nearly two weeks of fighting triggered by joint U.S.–Israeli air strikes has killed around 2,000 people, mostly in Iran and Lebanon, and spread across the region, rattling global markets and shipping lanes.
On Wednesday, three vessels were reported hit in Gulf waters after Iran’s Revolutionary Guards said they had fired on ships that ignored their orders. A Thai-flagged bulk carrier was set ablaze, forcing its crew to abandon ship, with three sailors missing, while Japanese and Marshall Islands-flagged vessels also sustained damage. Fourteen merchant ships have been struck since the war began.
Despite what the Pentagon described as the most intense bombing of the war so far, Iran continued launching missiles and drones at Israel and targets across the Middle East, signalling it retains the capacity to retaliate.
Oil prices climbed more than 4% on fresh fears of supply disruption after briefly surging near $120 a barrel earlier in the week, while Wall Street stocks fell as investors reassessed hopes for a quick end to the conflict.
The Strait of Hormuz — the narrow waterway that carries about a fifth of the world’s oil — remains effectively blockaded, with reports Iran has laid mines in the channel. The International Energy Agency has urged the release of 400 million barrels from global strategic reserves, the largest such intervention ever, though it would replace only a fraction of the disrupted supply.
U.S. President Donald Trump suggested the campaign could end soon, saying there was “practically nothing left” to target in Iran. Israel, however, said it still has an extensive list of missile and nuclear-related sites to strike.
“Get ready for oil to be $200 a barrel,” Iranian military spokesperson Ebrahim Zolfaqari warned, saying regional security had been destabilised and the economic shock could deepen as the war continues.