DUBAI/TEL AVIV, March 11 — Iran warned the world to brace for oil prices of up to US$200 a barrel as its forces attacked merchant ships and tensions escalated in the Gulf amid the ongoing war with the US and Israel.
The conflict, triggered by joint US and Israeli airstrikes nearly two weeks ago, has killed around 2,000 people, mostly in Iran and Lebanon, while disrupting global energy markets and shipping routes.
Iran’s Revolutionary Guards said their forces fired on vessels in Gulf waters on Wednesday after ships allegedly ignored their orders. Three vessels were reported hit in separate incidents.
The attacks come as the Strait of Hormuz, a key shipping lane that carries about a fifth of the world’s oil supply, remains effectively blockaded along Iran’s coast.
An Iranian military spokesperson said the strait was “undoubtedly” under Iran’s control.
Meanwhile, the International Energy Agency recommended releasing 400 million barrels from global strategic reserves in an effort to stabilise oil prices, one of the largest such interventions in history.
The US also announced plans to release 172 million barrels from its Strategic Petroleum Reserve beginning next week.
US President Donald Trump said American forces had destroyed dozens of Iranian naval vessels and insisted oil prices would eventually fall.
However, he signalled the conflict may continue, saying the US must “finish the job”.
US and Israeli officials say their aim is to weaken Iran’s ability to project military power beyond its borders and dismantle its nuclear programme.
Oil prices, which surged to nearly US$120 a barrel earlier in the week before easing to around US$90, rose again yesterday amid renewed fears of supply disruptions.
The US Federal Bureau of Investigation has also warned of potential Iranian drone threats targeting the US West Coast, while the US State Department cautioned that Iran-backed groups may attack American-linked energy infrastructure in Iraq.
Iranian officials signalled they are prepared for a prolonged confrontation.
“Get ready for oil to be US$200 a barrel,” Iranian military spokesperson Ebrahim Zolfaqari said, blaming Washington for destabilising regional security.
