IRAN’S military warned oil could reach $200 a barrel as fighting between the country and US-Israeli forces intensified, said Reuters on Wednesday.
This comes as three more merchant vessels were struck in the Gulf, bringing the total number of ships attacked since the conflict began to 14.
Ebrahim Zolfaqari, spokesman for Iran’s military command, directed the warning at Washington, saying regional security had been destabilised. Iran also threatened to attack banks doing business with the US or Israel and urged people across the Middle East to stay at least 1,000 metres from bank premises.
Oil briefly touched $120 a barrel earlier this week before settling around $90, as investors bet that US President Donald Trump would move quickly to end the conflict, said Reuters.
The International Energy Agency is expected to recommend releasing a record 400 million barrels from global strategic reserves, though analysts note this would cover only about three weeks of normal flow through the Strait of Hormuz.
A fifth of the world’s oil supply has been blockaded behind the strait since Iran closed it to shipping. Iran has said it will not reopen the waterway until US-Israeli attacks cease.
Israel’s defence minister said the campaign would continue without any time limit. A senior Israeli official told Reuters that Israeli leaders privately accepted Iran’s clerical government could survive the war.
More than 1,300 Iranian civilians have been killed since US and Israeli strikes began on February 28. Iranian attacks on Israel have killed at least 11 people, while Washington has confirmed seven US soldiers dead and around 140 wounded.
