Iran warns oil could hit $200 per barrel as US, IEA release emergency reserves
Patrick De Haan, head of petroleum analysis at GasBuddy, says the rise in gas prices from a possible Iranian blockade of the Strait of Hormuz ‘will not last long.’
Iran warned the United States on Wednesday that oil prices could rise to $200 a barrel as US and Israeli strikes against the country continue to roil global energy markets.
To prevent what could be the worst oil shock since the 1970s, the US announced that Washington, along with the International Energy Agency (IEA), would soon release a historic volume of oil from its emergency reserves.
If oil prices reach such levels, the average price of gasoline in the United States could exceed $5 a liter, analysts predict. As of Wednesday, the national average price of regular gasoline stood at $3.57 per gallon, according to the American Automobile Association.
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A spokesman for Iran’s top military command issued a warning in comments aimed at Washington, Reuters reported. It is reported that Tehran emphasized that the instability of oil markets in the world is the result of what Tehran describes as the conditions imposed by the United States and Israel.
“Be prepared for oil to be $200 a barrel, because the price of oil depends on the security of the region, which has been established,” said Ebrahim Zolfaqari, spokesman for the headquarters of Khatam al-Anbiya Central.
A customer is pumping gas into his car. (Justin Sullivan/Getty Images/Getty Images)
The threat of $200 a barrel oil comes after crude prices recently topped $100 for the first time since 2022, peaking at around $120 a barrel before settling around $90 on Wednesday thanks to a brief rally. West Texas Intermediate, the crude oil produced in the United States, was trading just below $86 a barrel.
In response, the IEA, made up of major oil-using countries, agreed to release 400 million barrels from its global strategic reserves, although experts warn that this will replace only a fraction of the supply that normally flows through the Strait of Hormuz.
The United States will add another 172 million barrels to its Strategic Petroleum Reserve starting next week, according to US Energy Secretary Chris Wright.
“Earlier today, the 32 member countries of the International Energy Agency unanimously agreed to President Trump’s request to lower energy prices through the planned release of 400 million barrels of oil and refined products from their reserves,” Wright said in a statement.
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President Donald Trump on Wednesday recommended the release of 172 million barrels of oil from US reserves. (Al Drago/Getty Images/Getty Images)
“As part of this effort, President Trump has authorized the Department of Energy to release 172 million barrels from the Strategic Petroleum Reserve, starting next week.
The energy secretary added that the Trump administration plans to replenish the US Strategic Petroleum Reserves by nearly 200 million barrels next year, about 20% more than the current drawdown, at no cost to taxpayers.
“For 47 years, Iran and its terrorists have aimed to kill the American people,” he said. “They have exploited and threatened the energy security of America and its allies. Under President Trump, those days are coming to an end. Rest assured that America’s energy security is as strong as ever.”
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The Thai-flagged cargo ship Mayuree Naree is engulfed in black smoke in the Strait of Hormuz on March 11, 2026. (Royal Thai Navy/Handout via Reuters/Reuters Images)
IEA countries have released emergency oil stocks only five times in the past, including the 1990-1991 Gulf War, Hurricane Katrina in 2005, the Libyan civil war in 2011 and twice after Russia invaded Ukraine.
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Iran also warned on Wednesday that any ships of the United States, Israel or their allies will be targeted if they pass through the Strait of Hormuz, a strategic channel used to transport a fifth of the world’s oil.
“Any ship whose cargo of oil or the ship itself belongs to the United States, the Zionist regime or its allies will be considered legitimate victims,” Al-Anbiya said in a statement issued by state TV, according to Arab News.
The comments highlight the naval attack on Iran last week and the reported deployment of naval mines in the region. At least 14 merchant ships have been hit since the conflict began.
Reuters contributed to this report.
