Iran’s military command warned that oil prices could reach $200 a barrel due to ongoing tensions in the Gulf region. This warning comes as Iran attacks Israel and targets across the Middle East, showing it can disrupt energy supplies despite intense U. S.-Israeli military actions. While oil prices rose sharply earlier in the week, they have since stabilized, and stock markets have rallied with hopes that U. S. President Donald Trump might find a quick resolution to the conflict initiated two weeks ago.
However, the situation on the ground remains dire, particularly in the Strait of Hormuz, through which a significant portion of the world’s oil passes, and where shipping routes are heavily blockaded. Ebrahim Zolfaqari, a spokesperson for Iran’s military, suggested the country would retaliate against banks linked to the U. S. or Israel and advised people to stay away from such institutions. Israeli officials have reportedly accepted that Iran’s leadership can survive the conflict, with no signs that the U. S. is close to halting the military campaign.
Public gatherings in Iran showed a strong display of defiance, as large crowds participated in funerals for high-ranking commanders killed in airstrikes. There are claims that Mojtaba Khamenei, the son of Iran’s Supreme Leader, was lightly wounded during the early stages of the war but has not made any public appearances or statements since.
The Iranian military has conducted missile strikes against U. S. bases in Iraq, naval headquarters in Bahrain, and targets in central Israel. There have been reports of explosions in Bahrain and drone incidents in Dubai. Many residents in Tehran have become accustomed to the nightly airstrikes, indicating a shift in their perceptions of the ongoing conflict.
Since the onset of the war, three additional merchant ships have been attacked in the Gulf, bringing the total number of reported hits to 14. An evacuation of crew members from a Thai-flagged freighter followed an explosion that caused a fire. Despite initial spikes, oil prices have moderated, currently around $90 per barrel, as investors remain hopeful for an end to the conflict.
Discussions are ongoing about releasing significant oil reserves, with the International Energy Agency potentially recommending a release of 400 million barrels, which would be a record amount. Still, this would only provide temporary relief to the supply chain.
U. S. and Israeli officials are determined to weaken Iran’s military capabilities and nuclear ambitions and have suggested the possibility of regime change in Iran. Israeli Defense Minister Israel Katz stated that military operations will continue indefinitely until all objectives are met. However, the longer the conflict persists, the more it poses risks to the global economy, and if Iran’s leadership remains intact, it will likely claim victory.
Iran’s police chief has warned against protests, stating that demonstrators will be treated as enemies. Iran has declared it will not permit oil transport through the Strait until U. S.-Israeli attacks cease, and negotiations are not on the table. Meanwhile, the U. S. has threatened severe retaliation if Iran disrupts shipping, though no military plans to address the blockade have been disclosed. As the conflict escalates, numerous casualties have been reported on both sides, and the toll on civilians continues to mount.
With information from Reuters
