Iran’s military escalated both its attacks and its rhetoric Thursday, warning that oil prices could soar to $200 a barrel as its forces struck ships, ports, and energy storage facilities across the Middle East. Brent crude climbed back toward $100 despite the largest emergency crude release in the International Energy Agency’s history. The warning highlighted the stakes of a conflict now directly threatening global economic stability.
An Iranian military spokesperson told the US to prepare for $200 oil, arguing that regional security — which Tehran blamed Washington for undermining — directly determines energy prices. The remark came as Iranian forces targeted the Thai-registered Mayuree Naree near the Strait of Hormuz, leaving three crew members reportedly trapped. Iraq halted all oil exports from its ports and Oman evacuated its main crude terminal at Mina Al Fahal.
Brent crude rose 9% to briefly touch $100.29 a barrel on Thursday before easing to $98, still up about 6% on the day. The oil price has surged from around $60 a barrel at the year’s start, reaching a peak of $119 earlier in the week during the initial shock of intense fighting. West Texas Intermediate also rose sharply, gaining 8.6% to $94.75.
The IEA mobilized 400 million barrels from emergency reserves held by its 32 members — a record coordinated intervention. The US announced its own contribution of 172 million barrels from the Strategic Petroleum Reserve, starting deliveries within a week. President Trump said the release would help reduce oil prices while the US continues military operations against Iran.
Goldman Sachs lifted its Brent forecast for late 2026 to $71 a barrel. Deutsche Bank warned of mounting stagflation risks. Stock markets in Asia fell, with Japan’s Nikkei down 1.6% and South Korea’s Kospi declining 1.2%, as investors factored in a prolonged and economically damaging conflict.
Iran’s Military Warns of $200 Oil as Conflict Disrupts Gulf Energy Flow
