The tension in the Middle East is increasingly moving to the energy markets and Iran is playing that card as a defense weapon. An Iranian Army spokesman has issued a warning to the United States and Israel. He assures that the price of oil could skyrocket to $200 per barrel if the military escalation continues.
“If they can afford the price of oil at $200 per barrel, let them continue playing this game,” the spokesman said in statements reported on Iranian state television. Ebrahim Zolfighari, linked to a wing of the Islamic Revolutionary Guard Corps (IRGC), accused Washington of having opened “a new chapter” in the war after the bombings against Iranian energy infrastructure.
Brent crude oil, the benchmark in Europe, soared by more than 20% in a single day, to exceed $114, in the largest daily rise in six years. West Texas Intermediate (WTI) also exceeded $119 during times of greatest tension. Although prices subsequently moderated their rise, the market is still in the triple digits.
One of the main sources of concern is the Strait of Hormuz, through which nearly a fifth of the world’s oil supply transits. Threats and incidents in the area have disrupted key shipping routes and stoked fears of a domino effect on global supply.
The escalation has revived inflation fears and hit financial markets. Even so, US President Donald Trump has downplayed the drama of the rise in crude oil prices and described it as “a small price to pay for security and world peace.”
In parallel, the G7 Finance Ministers have held an emergency meeting to study a possible coordinated release of strategic reserves together with the International Energy Agency (IEA). Although this measure has not been activated at the moment, the group has left the door open to intervene if the situation worsens.
For now, the rise is moderating
The price of a barrel of oil, which this morning was trading above $119 both in its Brent variety, the reference for Europe, and in the American reference of West Texas Intermediate (WTI), began to trade below the threshold of $100 after the G7 left the door open to release its strategic crude oil reserves in coordination with the International Energy Agency (IEA).
Thus, in the final stretch of the session in the markets of the Old Continent, the price of a barrel of Brent crude moderated its rise to 99 dollars, still almost 7% above last Friday’s close, but 17% below from the intraday maximum of 119.40 dollars.
Likewise, the price of a barrel of WTI crude oil relaxed to $95.49, 5% more than last Friday’s close, although 20% less than the peak of $119.43 this morning.
