'Get ready for $200 oil': Iran warns tankers bound for US, Israel will be targeted

Iran's military has escalated its rhetoric against the US and its allies, warning that oil prices could soar to $200 per barrel due to its ongoing attacks in the Persian Gulf. 

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Ebrahim Zolfaqari, spokesperson for Tehran's Khatam al-Anbiya military command headquarters, stated on Wednesday, "We won't allow even one litre of oil to reach the US, Zionists (Israel), and their partners. Any vessel or tanker bound to them will be a legitimate target." 

Also read: India diversifies crude supply routes: 75% now coming from outside Strait of Hormuz

"Get ready for ​the oil barrel ​to ⁠be at $200 because the oil price depends ⁠on ​the regional security, ​which you have destabilised," Zolfaqari was quoted as saying by Reuters. 

Earlier today, three cargo vessels - the Thai‑flagged Mayuree Naree, the Japan‑flagged One Majesty, and the Marshall Islands‑flagged Star Gwyneth - were struck by unknown projectiles in and around the Strait of Hormuz. The Mayuree Naree was hit near Oman. 

The UK Maritime Trade Operations (UKMTO) reported that 13 vessels were targeted since the start of the conflict in West Asia. 

After US-Israeli strikes on Iran on February 28, crude prices surged by up to 40%, briefly exceeding $100 per barrel before dropping below $84 on Tuesday. On Wednesday, the oil prices jumped to $90 a barrel again. 

Iran has shut the Strait of Hormuz, a critical passage for approximately one-fifth of the world's daily oil supply. The closure and subsequent attacks on oil tankers passing through Hormuz have severely disrupted energy flow, particularly to Asian markets, driving crude oil prices sharply higher. 

To stabilise the prices, the International Energy Agency (IEA) on Tuesday proposed the release of 400 million barrels of oil from its strategic reserves. 

Germany and Austria said they were releasing parts of their reserves following the IEA's request. Spain's Energy Minister Sara Aagesen confirmed that the 400 million barrels release would be more than double the volume of oil released after Russia's invasion of Ukraine in 2022. 

The IEA holds 1.2 billion barrels in public stocks, along with 600 million in mandatory commercial inventories, which could cover around 124 days of lost supply from the Gulf.