Oil prices have surged dramatically again after Iran’s Revolutionary Guard Corps announced on Monday that it will fire on any ships attempting to travel through the Strait of Hormuz.
Its announcement of the closing of the sea channel between Iran and Oman threatens to choke off the world’s most important oil and gas route, which accounts for one-fifth of global shipments.
Ebrahim Jabari, an adviser to the Guard’s commander-in-chief, stated that it will also assault oil pipelines and will not allow any crude to leave the region.
Tehran has targeted crucial infrastructure for global energy production in response for the Israeli and US bombing onslaught that began on Saturday.
As well as pushing up prices on global energy markets, the conflict has seen oil transport costs skyrocket with some of the world’s biggest maritime insurers cancelling war risk cover.
Analysts suggest crude oil prices could breach $100 a barrel if there is a prolonged disruption to shipping in the region.
