(MENAFN) Iraq’s Foreign Minister Fuad Hussein has raised the alarm that growing conflict in the Middle East and a potential closure of the Strait of Hormuz could drive oil prices up to $300 per barrel. His warning came during a phone call with German Foreign Minister Johann Wadephul in the wake of Israeli airstrikes on Iran’s military and nuclear sites.

Hussein explained that if a large-scale conflict were to break out, oil prices could soar between $200 and $300 a barrel, fueling inflation in European countries and affecting oil-producing states like Iraq. Closing the Strait of Hormuz — a key route for nearly 20% of the world’s oil — could cut off about 5 million barrels of Gulf and Iraqi oil from the market each day.

Some analysts, including JPMorgan, say prices could rise to about $130 a barrel in a severe scenario, while a complete blockade might send prices much higher — possibly up to $300. Brent crude jumped 7% to $74.23 following the first attacks. Although Israeli strikes have not directly hit Iran’s main oil facilities, future attacks or Iran’s potential move to block Hormuz could profoundly affect the market.

Meanwhile, Russian official Aleksey Pushkov said the conflict could cause a dramatic rise in oil prices if Iran shuts the Persian Gulf to tanker movement.

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