TEHRAN/WASHINGTON, March 11 – Tensions across the Middle East intensified dramatically on Wednesday as Iran warned that global oil prices could soar to $200 per barrel amid escalating military conflict and growing disruption to shipping routes in the Gulf. The warning came as several commercial vessels were struck in regional waters and fears spread that the conflict could expand beyond the immediate battlefield.
The crisis has triggered sharp reactions from energy markets, security agencies, and governments around the world. Oil prices jumped again during trading, while policymakers discussed emergency measures to stabilize supplies. At the same time, military activity continued across multiple fronts, underscoring concerns that the confrontation could become one of the most destabilizing regional crises in decades.
Escalating Military Tensions and Attacks on Gulf Shipping
The situation intensified after Iran’s Revolutionary Guards announced that their forces had fired upon several merchant vessels in the Gulf. According to maritime security reports and shipping industry sources, three ships were hit in separate incidents on Wednesday.
One of the vessels, a Thai-flagged bulk carrier, caught fire after being struck. Emergency evacuation procedures were carried out for crew members, though reports indicated that three individuals remained missing and were feared trapped inside the engine room during the blaze.
Two additional vessels, including a container ship flying the Japanese flag and another bulk carrier registered in the Marshall Islands, were also reportedly damaged by projectiles. These attacks added to an expanding list of incidents at sea since the conflict began, with at least 14 commercial ships now reported to have suffered damage.
Iranian military spokesperson Ebrahim Zolfaqari warned that the disruption to shipping routes could have dramatic consequences for global energy markets. In remarks directed toward Washington, he suggested that oil prices could skyrocket due to the instability created in the region.
Energy analysts say such warnings carry significant weight because of the strategic importance of the Strait of Hormuz. The narrow waterway, located along Iran’s southern coast, serves as a critical corridor through which roughly one fifth of the world’s oil supply normally travels.
Shipping companies and naval authorities say traffic through the strait has slowed dramatically as security risks increase. Sources in the maritime industry also indicated that mines may have been deployed in the channel, further complicating navigation for commercial vessels.
Oil Markets React as Global Energy Supply Faces Threat
The rapidly deteriorating security environment has already triggered turbulence in global energy markets. Oil prices, which earlier surged close to $120 per barrel before retreating slightly, climbed again during Wednesday trading amid fears that supply routes could remain blocked.
Energy policymakers are now considering emergency measures to calm the market. The IEA, which coordinates energy policies among major oil consuming countries, recommended the release of approximately 400 million barrels from strategic reserves. If implemented, it would represent the largest coordinated release of emergency oil stockpiles in history.
Officials in Washington quickly expressed support for the proposal. According to comments made by U.S. Interior Secretary Doug Burgum during an interview with CNBC, American energy producers are also preparing to increase production in response to the rising prices.
Despite these efforts, energy economists caution that strategic reserves can only offset a portion of the disruption if the Strait of Hormuz remains blocked. The route normally carries millions of barrels of oil each day, meaning prolonged instability could quickly strain global supply chains.
The price shock is already being felt in financial markets. Major stock indexes on Wall Street declined as investors worried about the economic consequences of sustained high energy costs. The prospect of $200 oil has revived comparisons to the energy crises of the 1970s, when supply shocks caused severe economic disruption across many countries.
Regional Conflict Expands While Leaders Trade Warnings
The maritime attacks unfolded against the backdrop of a broader military confrontation that has intensified over the past two weeks. The conflict began after joint airstrikes by the United States and Israel targeted Iranian facilities, launching a wave of retaliation across the region.
Despite heavy bombardment described by U.S. defense officials as among the most intense strikes in the campaign, Iran has continued to launch missiles and drones at targets across the Middle East, including Israel.
Israeli Defense Minister Israel Katz stated that the military operation would continue for as long as necessary to achieve its objectives. According to remarks carried by Israeli media outlets, the campaign has no fixed timeline and will proceed until military goals are met.
At the same time, President Trump suggested that the operation might be approaching its conclusion. In a phone interview with the political news site Axios, he claimed that the number of remaining strategic targets in Iran had become limited.
Trump also addressed concerns raised by American security agencies regarding potential retaliatory strikes on U.S. soil. ABC News reported that the FBI had circulated warnings about possible drone threats targeting the U.S. West Coast. Trump dismissed those concerns, telling reporters that he was not worried about such attacks.
Meanwhile, the U.S. State Department issued a separate warning that Iran or allied militia groups could attempt to strike American-owned energy facilities in Iraq. Officials also advised caution for locations frequently visited by Americans, including hotels and business centers in the Iraqi Kurdistan region.
Within Iran itself, the conflict has produced widespread disruption. Airstrikes have struck multiple targets in Tehran and other cities, prompting many residents to leave urban areas for rural regions. Residents reported repeated nighttime bombardments that have filled parts of the capital with smoke from burning fuel facilities.
Funerals for military commanders killed in earlier strikes drew large crowds in Tehran. State media footage showed they carried caskets and brandished flags and portraits of slain Supreme Leader Ayatollah Ali Khamenei.
Iranian police authorities warned that protests or unrest would be treated as hostile actions during the wartime environment. According to remarks attributed to national police chief Ahmadreza Radan, security forces have been placed on high alert.
Despite speculation among some observers that the conflict could destabilize Iran’s leadership, several regional analysts believe the political system remains resilient for now. Israeli officials speaking privately to journalists have acknowledged that Iran’s ruling establishment may survive the current confrontation.
As military operations continue and oil markets react to every new development, governments across Europe and the Middle East are urging restraint. Diplomatic appeals for de-escalation have grown louder in recent days, reflecting fears that further escalation could trigger a prolonged economic and security crisis extending far beyond the region.