Iran warns oil could hit $200 barrel as three ships come under attack in Gulf

DUBAI: Three merchant ships were struck by unidentified projectiles in the Gulf on Wednesday as escalating conflict in the Middle East prompted a stark warning from Islamic Revolutionary Guard Corps (IRGC) that said oil prices could soar to $200 a barrel, deepening concerns over global energy markets.

The latest incidents occurred in and around the Strait of Hormuz, a vital shipping lane through which about one‑fifth of the world’s crude oil passes.

Maritime security monitors reported that a Thai‑flagged bulk freighter caught fire after an explosion, while a Japan‑flagged container ship and a Marshall Islands‑flagged bulk carrier were also damaged.

Crews were evacuated safely from the most severely hit vessel.

The IRGC’s comments underline the strain on energy markets caused by the nearly two‑week‑old war between Iran and a US-Israeli coalition.

A spokesperson said regional instability risked pushing global oil prices toward $200 a barrel, a level not seen in decades, if security conditions fail to improve.

Global oil benchmarks briefly spiked earlier this week, with Brent crude nearly touching $120 a barrel, before settling around $90 as investors bet on a potential diplomatic or military de‑escalation.

The conflict has disrupted maritime traffic through the Strait of Hormuz, with several vessels avoiding the waterway due to heightened risks, further squeezing supplies and adding to price volatility.

The situation remains fluid, with energy officials and governments around the world watching closely as tensions show no immediate signs of easing.