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Iran Warns: Prepare for $200 Oil

Published March 11, 2026, 17:21
Iran Warns: Prepare for $200 Oil

Iran issued strong warnings through its military administration spokesperson, threatening to block oil transport to the US, Israel, and their allies. Ebrahim Zolfaqari stated that any vessel connected to these countries would be considered a legitimate target. The warning was accompanied by an estimate that oil prices could reach $200 a barrel, linking regional security to oil prices and accusing the US and its allies of destabilizing the region. The price of US oil WTI rose by 5% to over $88 a barrel following the warnings, reflecting concerns about potential disruptions in the Strait of Hormuz, a critical maritime route for global oil trade. The initial rise in oil prices had approached $120 a barrel, but retreated after statements by President Trump. The increase in oil prices occurred in a context of heightened geopolitical tensions, against the backdrop of US-Iran tensions. The initial rise in prices had caused panic in the markets, but Trump's statement that the war is 'almost' over led to some calm. Prior to the crisis, the price of WTI was $72 a barrel and Brent North Sea was $67 a barrel. The situation highlights the sensitivity of the global oil market to geopolitical developments and the potential for sudden fluctuations in prices due to unforeseen events.