'Not Allow A Single Drop Of Oil To Leave': Iran Threatens To Choke Gulf Oil Flow, Warns Prices Could Hit $200 A Barrel

(MENAFN- Live Mint) A senior figure within Iran's Islamic Revolutionary Guard Corps (IRGC) on Monday declared the Strait of Hormuz is closed and threatened to attack any vessel attempting passage, dramatically escalating fears of a global energy shock amid intensifying hostilities in the Middle East.

The warning, issued as oil and gas markets convulsed, signals Tehran's willingness to weaponise one of the world's most critical maritime chokepoints in retaliation for the Israeli and US bombing campaign that began on Saturday and killed Iranian Supreme Leader Ayatollah Ali Khamenei and other senior officials.

IRGC threatens to“set those ships ablaze”

Ebrahim Jabari, a senior adviser to the commander-in-chief of the IRGC, delivered the message in comments carried by Iranian state media.

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“The strait is closed. If anyone tries to pass, the heroes of the Revolutionary Guard and the regular navy will set those ships ablaze,” Al Jazeera quoted Jabari.

The Strait of Hormu, which lies between Iran and Oman, handles roughly one-fifth of the world's oil supply. Even the suggestion of its closure is enough to send tremors through commodity markets and diplomatic channels alike.

Jabari went further, outlining an expansive energy offensive.“We will also attack oil pipelines and will not allow a single drop of oil to leave the region. Oil price will reach $200 in the coming days,” he said in a post on the IRGC's Telegram channel.

He added:“The Americans, with debts of thousands of billions of dollars, are dependent on the region's oil, but they should know that not even a drop of oil will reach them.”

Energy markets reel as gas prices surge

Energy prices reacted swiftly to the mounting threats and reported disruptions. Natural gas prices surged by nearly 50% in Europe and close to 40% in Asia after QatarEnergy suspended liquefied natural gas production following attacks on its facilities, reported Al Jazeera.

Earlier in the day, Saudi Arabia's Ras Tanura oil refinery - capable of processing more than half a million barrels of crude per day - was targeted by drones, according to a military spokesman cited by the Saudi Press Agency (SPA). Air defences reportedly intercepted the incoming aircraft.

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The cumulative impact of tanker disruptions, refinery threats and potential pipeline attacks has amplified concerns about the stability of global supply chains. Analysts warn that a sustained closure of Hormuz, or credible attacks on regional infrastructure, could push crude prices towards the $200 mark cited by Jabari - levels unseen in modern energy markets.

Strategic chokepoint at the heart of global oil flows

The Strait of Hormuz has long been regarded as the world's most strategically sensitive maritime corridor. Approximately 20% of global oil consumption passes through its narrow waters each day, making it indispensable to both Asian and European economies.

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A full shutdown would reverberate far beyond the Gulf, raising inflationary pressures and complicating monetary policy across major economies already grappling with geopolitical volatility.

US pledges measures to curb price shock

Washington signalled it would move quickly to blunt the economic fallout. Secretary of State Marco Rubio said the United States anticipated market turbulence and would act to cushion its impact.

“Starting tomorrow, you will see us rolling out those phases to ⁠try to mitigate against ⁠that... We anticipated this could be an issue,” Rubio said.

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