Iran has warned that oil prices could surge to 200 dollars a barrel after attacking three commercial vessels in the Strait of Hormuz, a critical waterway that carries about one fifth of the world’s daily oil supply. Tehran said it would block shipments from the Middle East if attacks by the United States and Israel continue, following strikes that damaged multiple ships and left several crew members missing. Oil prices have already spiked amid the escalating conflict.

The attacks came after United States forces destroyed several Iranian minelaying vessels near the strait. Saudi Arabia’s state oil company warned of catastrophic consequences for global energy markets if exports remain disrupted, saying current supply commitments are being met only by drawing on limited storage reserves. European leaders are considering subsidies or price caps to ease the impact of soaring gas and electricity costs.

Fighting has intensified across the region, with exchanges of air strikes between Iran, Israel and allied forces, as well as clashes in Lebanon and missile interceptions in Saudi Arabia and the United Arab Emirates. Japan announced it will release oil from its national reserves to stabilise markets, while concerns grow that the conflict could widen further, with claims that Russia may deepen its involvement. The escalating violence has heightened fears of prolonged economic and geopolitical instability worldwide.