Iran’s military command headquarters has vowed to shift from what it described as “reciprocal hits” amid sustained strikes on its adversaries, warning that global oil prices could soon surge to $200 per barrel amid escalating tensions in the Middle East.
The warning was issued on Wednesday by the spokesperson for Tehran’s Khatam al-Anbiya military command headquarters, who argued that the United States would be unable to control oil prices if regional tensions continued to escalate.
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“Get ready for the oil barrel to be at $200 because the oil price depends on the regional security, which you have destabilised,” Reuters quoted him as saying.
“We won’t allow even one litre of oil to reach the U.S., Zionists (Israel) and their partners. Any vessel or tanker bound to them will be a legitimate target,” Ebrahim Zolfaqari said.
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Escalating tensions
The threat comes amid mounting concerns over global oil supply following disruptions in the Middle East linked to the ongoing conflict.
On Wednesday, member countries of the International Energy Agency (IEA) unanimously agreed to release 400 million barrels of oil into the global market as an emergency measure to cushion supply disruptions caused by the escalating war.
Since the conflict broke out more than a week ago, crude shipments through the Strait of Hormuz — a vital route that carries about a fifth of the world’s daily oil supply — have faced persistent disruptions.
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The waterway has become largely impassable for oil tankers due to security concerns, with Iran repeatedly threatening to target vessels attempting to pass through the strait.
These disruptions pushed oil prices to nearly $120 per barrel on Monday amid fears of prolonged supply shortages, triggering declines in global stock markets.
Although recent signals from world leaders about efforts to cushion the effects of the crude shipment disruption have helped ease prices slightly, the crisis continues to pose significant risks to the global economy.
Impact in Nigeria
In Nigeria, consumers are already feeling the impact of the supply shock caused by the conflict.
Petrol prices have risen by more than 25 per cent across major cities, worsening the cost-of-living crisis many Nigerians have faced since the removal of fuel subsidy in 2023.
Fuel prices jumped from about N870 per litre to nearly N1,400 per litre in Abuja within a week after the war broke out.
PREMIUM TIMES observed that major filling stations across the city are currently selling petrol at about N1,261 per litre and above.
AFDIN filling station sells at N1,310 per litre, AA Rano at N1,330, NIPCO at N1,285, MRS at N1,267, while NNPC Retail outlets sell at N1,261 per litre.
The price adjustment intensified after the Dangote refinery reportedly adjusted its gantry prices for petrol and diesel twice within 48 hours as Brent crude crossed the $100-per-barrel mark earlier in the week.
Although the refinery has since announced a price reduction as Brent crude prices eased, pump prices across filling stations have largely remained unchanged.
The increase in petrol prices is already affecting many Nigerians, with transportation costs and the prices of goods and services gradually rising across several cities.
The agreed release by IEA member nations far exceeds the 182 million barrels of oil that countries placed on the market in two tranches in 2022 when the Russia-Ukraine war was at its peak.
In the same year, the United States also released an additional 180 million barrels from its Strategic Petroleum Reserve.
Despite the unprecedented scale of the latest release, analysts believe the measure may have a limited impact in addressing what they describe as a much larger supply shock amid Iran’s threats to attack oil shipments passing through the Strait of Hormuz.
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