Petroleum prices are unlikely to drop anytime soon after Iran’s Revolutionary Guards warned they might block Middle East oil shipments if the U.S. and Israel persist with their attacks.
Iran’s Islamic Revolutionary Guards Corps said it would not allow any oil to leave the region if attacks from the United States and Israel continue.
“We are the ones who will determine the end of the war,” a spokesperson said, according to state media.
Brent crude oil is currently priced at $92.01 per barrel, down 0.91 per cent from the previous trading day. Just a week ago, it was at $79.78 per barrel, marking a 15.33 per cent increase since then. WTI crude sits at $90.48 per barrel, dropping 0.85per cent from its last close.
The crisis has also driven up petroleum prices in Nigeria, with pump prices reaching N1,175 as of Monday night.
Mojtaba Khamenei’s appointment on Monday appeared to dash hopes of a swift end to the war, sending oil markets surging and share markets nosediving, before swinging in the other direction when Trump predicted a quick end to the war and reports of a possible ease in sanctions on Russian energy.
This threat has prompted United States President Donald Trump to warn of a stronger U.S. response, stating that U.S. attacks could rise sharply if Iran sought to block tanker traffic through the Strait of Hormuz, which handles one-fifth of the world’s oil supply.
“We’re going to hit them so hard that neither they nor anyone backing them will ever be able to take back that part of the world.,” Trump said at a news conference on Monday.
In a later Truth Social post, Trump repeated his warning.
“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,” he said.
The war has already effectively shut the Strait of Hormuz, leaving tankers unable to sail for more than a week and forcing producers to halt pumping as storage facilities fill.
Trump’s comments followed Monday’s volatile financial markets, which were driven by concerns that Iran’s security apparatus was uniting behind Mojtaba Khamenei and was unwilling to de-escalate tensions.
Trump stated the U.S. had significantly damaged Iran’s military and anticipated a resolution sooner than his initially projected four weeks, although he did not specify what would constitute victory.
Israel says its war aim is to overthrow Iran’s system of clerical rule. U.S. officials mainly say Washington aims to destroy Iran’s missile capabilities and nuclear programme, but Trump has said the war can end only with a compliant Iranian government.
At least 1,332 Iranian civilians have been killed and thousands wounded since the U.S. and Israel launched a barrage of air and missile strikes across Iran at the end of February, according to Iran’s U.N. ambassador.
After speaking with Russian President Vladimir Putin, Trump said the United States will waive oil-related sanctions on “some countries” to ease the shortage. According to multiple sources, that could mean a further easing of sanctions on Russian oil, which could complicate efforts to punish Moscow for
its war in Ukraine. Other options include a possible release of oil from strategic reserves or restricting U.S. exports, sources said.
Brent crude futures fell more than 10 per cent on Tuesday after soaring by as much as 29 per cent on Monday to their highest since 2022. Global stock markets also bounced.
The price of gasoline has particular political resonance in the United States, where voters cite rising costs as a top concern ahead of the November midterm elections, when Trump’s Republicans will try to keep control of Congress.
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