By Micah Jonah, March 11, 2026
Iran has warned that it will block oil shipments through the Strait of Hormuz, raising fears that global crude prices could surge to $200 per barrel as the war involving the United States and Israel intensifies.
A spokesperson for the Islamic Revolutionary Guard Corps said vessels linked to the United States, Israel, or their allies would be considered legitimate targets while the waterway remains closed.
The strait is one of the world’s most critical shipping routes, with roughly one fifth of global oil supplies passing through it daily. Its closure has triggered sharp fluctuations in energy markets and heightened fears of a prolonged supply crisis.
Maritime security agencies reported that several vessels were struck by projectiles in the waterway, including the Thai bulk carrier Mayuree Naree, which was attacked north of Oman.
In response to the disruption, the International Energy Agency announced that its 32 member countries have agreed to release about 400 million barrels of oil from emergency reserves to stabilize global markets.
IEA Executive Director, Fatih Birol said the move is intended to ease immediate supply pressure but stressed that the reopening of the Strait of Hormuz remains essential for restoring normal energy flows.
Several countries have already announced plans to release reserves. Japan said it would release around 80 million barrels from national and private stockpiles, while European nations including Germany and Austria also signalled they would make emergency reserves available.
Analysts warn that if the strait remains closed for weeks or months, the global shipping and energy industries could face severe disruptions, further pushing oil prices higher, affecting economies, worldwide.
