Iran Warns Oil Could Hit $200, Threatens Strait of Hormuz Blockade

Iran has warned that it will not allow “a single litre of oil” to pass through the Strait of Hormuz for the benefit of the United States, Israel and their allies, raising fears of a major disruption to global energy supplies and a potential surge in global oil prices to $200 per barrel.

The warning was issued by Ebrahim Zolfaqari, spokesperson for Iran’s Khatam al‑Anbiya Central Headquarters, who said Tehran could target any vessels carrying oil destined for countries it considers hostile if tensions in the region continue to escalate.

“Let us firmly reiterate that we will never allow even a single litre of oil to pass through the Strait of Hormuz for the benefit of the US, the Zionists and their partners,” Zolfaqari said.

“Any vessel or oil shipment intended for America, the Zionist regime or their hostile allies will be a legitimate target for us.”

The comments come amid escalating tensions between Iran and the United States following warnings from Donald Trump, the President of the United States, who threatened that Iran would face “death, fire and fury” if it attempted to disrupt international shipping through the critical maritime corridor.

Zolfaqari warned that the expansion of the conflict could send crude oil prices soaring, noting that instability in the region directly affects global energy markets.

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“With the expansion of war in the region, you should prepare for $200 per barrel because the price of oil depends on security in the region, and you are the source of insecurity,” he said.

The Strait of Hormuz, located between Iran and Oman, connects the Persian Gulf to the Gulf of Oman and the Arabian Sea and serves as one of the most strategic chokepoints in global energy trade.

An estimated 20 percent of the world’s oil supply—around 18 to 20 million barrels per day—passes through the narrow waterway, making any disruption a major concern for global markets.

A blockade or prolonged disruption could significantly impact exports from major Gulf producers including Saudi Arabia, Iraq, Kuwait, Qatar and the United Arab Emirates.

Energy markets have already reacted to the rising tensions, with Brent crude oil prices briefly crossing $100 per barrel, the highest level in several months, as traders respond to fears of supply disruptions.

Maritime security agencies have also reported increased attacks on commercial vessels transiting the region, raising concerns over the safety of shipping routes in the Gulf.

Amid the growing crisis, the International Energy Agency (IEA) announced that its 32 member countries will release 400 million barrels of oil from emergency reserves in an effort to stabilise markets and prevent severe supply shortages.

According to Fatih Birol, Executive Director of the IEA, the coordinated action represents the largest emergency oil release in the organisation’s history.

The move surpasses the 182 million barrels released in 2022 following the Russian invasion of Ukraine, highlighting the scale of concern over the current Middle East crisis.

Energy analysts warn that while emergency reserves could temporarily ease pressure on markets, the most important factor for stabilising prices remains the restoration of safe passage through the Strait of Hormuz.

Meanwhile, concerns are growing in Nigeria over the potential impact of the crisis on domestic fuel prices.

The African Democratic Congress (ADC) has called on the Federal Government to introduce a temporary cap on petrol prices to protect Nigerians from rising fuel costs driven by global oil market volatility.

In a statement signed by its National Publicity Secretary, Bolaji Abdullahi, the party warned that the Middle East crisis could worsen Nigeria’s already severe cost-of-living crisis.

“ADC calls on the Federal Government to immediately introduce a temporary and time-bound cap on petrol prices to prevent further increases that continue to push the cost of living beyond the reach of millions of Nigerians,” Abdullahi said.

The party also criticised the government’s plan to distribute 100,000 compressed natural gas (CNG) conversion kits, arguing that the figure represents less than one percent of Nigeria’s more than 11 million vehicles.

According to the party, the programme is further constrained by the limited number of CNG refuelling stations across the country, making the transition away from petrol difficult for many motorists.

ADC warned that while global oil market volatility may be triggered by external shocks, it should not be used to justify unchecked fuel price increases in Nigeria’s already fragile economy.

Analysts say any prolonged disruption to shipping in the Strait of Hormuz could trigger one of the biggest energy shocks in decades, with global consequences including higher fuel prices, rising inflation and increased transport costs.

Iran Warns Oil Could Hit $200, Threatens Strait of Hormuz Blockade