On 11/3, Iran's military issued a stark warning to the US, stating that global oil prices could surge to 200 USD a barrel. "Be ready for oil prices to reach 200 USD a barrel, because oil prices depend on the security of the region you are destabilizing," Ebrahim Zolfaqari, spokesperson for Iran's military command, said in comments directed at the US.

This warning followed Iran's missile launches at Israel and other targets across the Middle East on 11/3. These actions demonstrate Iran's continued capability to retaliate and disrupt energy supplies, despite the Pentagon reporting the most intense US-Israeli airstrikes to date.

Smoke rises from a Saudi Aramco oil refinery on 2/3. Photo: Vantor

Smoke rises from a Saudi Aramco oil refinery on 2/3. Photo: Vantor

Oil markets have seen significant volatility amidst the escalating tensions. On 9/3, oil prices had neared 120 USD a barrel, a four-year high. However, a day later, both WTI and Brent crude fell more than 11% after US President Donald Trump predicted the Middle East conflict would soon end. On 11/3, prices fluctuated, currently up almost 2% to 85-89 USD.

Investors had previously bet President Trump would swiftly resolve the conflict he and Israel initiated nearly two weeks prior. However, the situation has not de-escalated. There are no signs that ships can safely transit the Strait of Hormuz, which transports about 20% of the world's oil. This ongoing instability is considered the most serious energy supply disruption since the 1970s oil shock.

Adding to the regional threats, Iran's military on 11/3 declared it would target US-Israeli economic interests and the offices of major US technology companies in the region. They also urged residents in the area to avoid banks within a 1 km radius.

By Ha Thu (according to Reuters)