Iran has told the world to prepare for oil to hit US$200 a barrel as its forces attacked merchant ships in the blockaded Gulf.
"Get ready for oil to be $200 a barrel because the oil price depends on regional security, which you have destabilised," Ebrahim Zolfaqari, a spokesperson for Iran's military command, said in comments addressed to the U.S.
Following joint strikes by the U.S. and Israel, Iran has retaliated by firing at Israel and targets across the Middle East on Wednesday.
While Israel’s Defence Minister, Israel Katz, said the operation "will continue without any time limit, as long as required, until we achieve all objectives and win the campaign", Trump has tried to reassure markets that the war will be over soon.
Trump told Axios that there was “practically nothing left” to target in Iran.
However, there are still a few signs of let-up on the ground or that ships can sail safely through the Strait of Hormuz.
Around a fifth of the world’s oil travels through the channel, and the war has caused the worst disruption to energy supply since the oil shocks of the 1970s.
Recently, the International Energy Agency (IEA) agreed to release 400 million barrels of oil to try to rein in crude prices.
This is the largest move of its kind in history.
The IEA said the release had been backed unanimously by 32 member countries, including Australia, in the sixth such move it has made since its creation in the 1970s.
Earlier this week, oil prices shot up briefly to $120 per barrel, before settling back down to $90, suggesting confidence that the war is close to an end from investors.
