Global oil prices moved higher on Wednesday as geopolitical tensions in the Middle East intensified, with Iran warning that crude prices could soar to $200 per barrel if the conflict involving the United States and Israel disrupts oil flows in the region.
As at the time of writing (5:50 PM WAT), Brent crude was trading at $91.96 per barrel, up 4.74%, while West Texas Intermediate (WTI) stood at $87.21 per barrel, gaining 4.51%. Natural gas also climbed 4.54% to $3.157, although Murban crude slipped 3.33% to $96.25 per barrel.
The market rally follows warnings from Iranian officials after an Iranian drone strike reportedly hit Oman’s largest oil storage facility, raising fears of broader disruptions to energy infrastructure across the Gulf.
Iran also threatened to block oil shipments through the Strait of Hormuz, a strategic chokepoint that handles roughly 20% of global oil supply, escalating concerns about a potential supply shock in global energy markets.
Oil traders are now closely monitoring developments in the Middle East, as any sustained disruption to tanker movements through the corridor could push crude prices sharply higher in the coming days.