Iran has issued a warning that oil could rise to as high as $200 a barrel if Gulf states do not pressure the United States and Israel to stop attacks on regional energy infrastructure. The statement was made by Ebrahim Zolfaghari, who is a spokesman for Iran’s central military command. The statement was made during the second week of conflict.
“The governments of Islamic countries are expected to warn the criminal America and the savage Zionist regime of such cowardly, inhumane actions as soon as possible,” Iran’s central military command spokesman Ebrahim Zolfaghari told state TV.
“Otherwise, similar measures will be taken in the region, and if you can tolerate oil at more than US$200 per barrel, continue this game,” he added.
This statement was made as the oil market remains tense due to fears of disruptions in the region. Reuters reported that Brent crude prices soared as traders reacted to the possibility of attacks being made on energy sites as well as shipping routes that are connected to the conflict. The main shipping route is the Strait of Hormuz, which is an important route for international oil supplies.
Statistics obtained from the U.S. Energy Information Administration revealed that one-fifth of the petroleum liquids consumed globally is passed through the Strait of Hormuz. The Strait of Hormuz is a significant route, and any perceived danger to traffic in this area is considered a risk to international supplies. Even small disruptions in this area can cause ripples in international supplies.
Though the United States imports no Iranian oil due to sanctions, American consumers cannot afford to be oblivious to increases in fuel prices. Reuters reported that gasoline prices in the United States still react to international events. This is because crude is sold in an interlinked world market. Canada and Mexico are among the main foreign sources of imported oil to the United States.
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