Tehran, Iran. Iran’s military command warned on Wednesday that the world should be prepared for oil to hit $200 a barrel as three more ships came under attack in the blockaded Gulf. Iran also said it continued to strike Israel and targets across the Middle East while major shipping through the Strait of Hormuz remained disrupted.
Oil warning and Strait of Hormuz disruption
Ebrahim Zolfaqari, spokesperson for Iran’s military command, said oil prices could reach $200 a barrel, saying the price depends on regional security. His comments were addressed to the United States.
The Strait of Hormuz remained unsafe for shipping, with a fifth of the world’s oil blockaded behind a narrow channel along the Iranian coast, described as the worst disruption to energy supplies since the oil shocks of the 1970s.
Market reaction and expectations of an end to fighting
Oil prices that had risen earlier in the week eased and stock markets rebounded, with investors betting that U.S. President Donald Trump would find a quick way to end the war he began alongside Israel nearly two weeks ago.
Two Israeli officials said there was no sign Washington was close to ending the campaign.
Threats against banks and security warning
After offices of a bank in Tehran were hit overnight, Zolfaqari said Iran would respond with attacks on banks that do business with the United States or Israel. He added that people across the Middle East should stay 1,000 metres from banks.
Israeli assessment of Iran’s leadership
A senior Israeli official told Reuters that Israeli leaders now privately accepted that Iran’s ruling system could survive the war.
Funerals and report on Mojtaba Khamenei
Large crowds took to the streets in Iran on Wednesday for funerals for top commanders killed in airstrikes, carrying caskets and holding flags and portraits of Supreme Leader Ayatollah Ali Khamenei and his son and successor, Mojtaba.
An Iranian official told Reuters that Mojtaba Khamenei had been lightly wounded early in the war, when airstrikes killed his father, mother, wife and a son. The official said he has not appeared in public or issued any direct message since the war began.
What impact do you expect the Strait of Hormuz disruption to have on global energy markets?