Iran warned the United States on Wednesday that oil prices could soar to $200 a barrel as escalating U.S. and Israeli strikes against the country continue to rattle global energy markets.
To prevent what could be one of the worst oil shocks since the 1970s, the U.S. announced that Washington, along with the International Energy Agency (IEA), will soon release a historic volume of oil from its emergency reserves.
If oil prices reach such levels, average gas prices in the United States could surpass $5 a gallon, analysts predict. As of Wednesday, the national average price for regular gasoline stands at $3.57 per gallon, according to the American Automobile Association.
A spokesperson for Iran’s primary military command issued the warning in comments addressed to Washington, Reuters reported. Tehran reportedly emphasized that the instability in global oil markets was the result of what Tehran describes as conditions imposed by the United States and Israel.
“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilized,” Ebrahim Zolfaqari, spokesperson for Khatam al-Anbiya Central Headquarters, said.
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The threat of $200-a-barrel oil comes after crude prices recently surged past $100 for the first time since 2022, peaking at nearly $120 a barrel before settling around $90 on Wednesday due to a brief relief rally. West Texas Intermediate, the crude oil produced in the United States, was trading at just under $86 a barrel.
In response, the IEA, made up of major oil-consuming nations, agreed to release 400 million barrels from its global strategic reserves, though experts warn this would replace only a fraction of the supply normally flowing through the Strait of Hormuz.
The United States will add another 172 million barrels from its own Strategic Petroleum Reserve starting next week, according to U.S. Secretary of Energy Chris Wright.
“Earlier today, 32 member nations of the International Energy Agency unanimously agreed to President Trump’s request to lower energy prices with a coordinated release of 400 million barrels of oil and refined products from their respective reserves,” Wright said in a statement.
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“As part of this effort, President Trump authorized the Department of Energy to release 172 million barrels from the Strategic Petroleum Reserve, beginning next week. This will take approximately 120 days to deliver based on planned discharge rates.”
The energy secretary added that the Trump administration has arranged to replenish the U.S. Strategic Petroleum Reserves with roughly 200 million barrels over the next year, roughly 20% more than the amount being drawn down, at no cost to taxpayers.
“For 47 years, Iran and its terrorist proxies have been intent on killing Americans,” he said. “They have manipulated and threatened the energy security of America and its allies. Under President Trump, those days are coming to an end. Rest assured, America’s energy security is as strong as ever.”
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IEA nations have released emergency oil stocks on only five previous occasions, including the 1990–1991 Gulf War, Hurricane Katrina in 2005, the Libyan civil war in 2011, and twice following Russia’s invasion of Ukraine.
Iran further warned on Wednesday that any ships belonging to the United States, Israel or their allies would be targeted if they pass through the Strait of Hormuz, the strategic channel that typically transports about a fifth of the world’s oil supply.
“Any vessel whose oil cargo or the vessel itself belongs to the United States, the Zionist regime or their hostile allies will be considered legitimate targets,” Al-Anbiya said in a statement carried by state TV, according to Arab News.
The comments highlight Iran’s maritime attacks in the past week and reported deployment of naval mines in the region. At least 14 merchant ships have been hit since the conflict began.
Reuters contributed to this report.
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