Iran raised the stakes of the ongoing Middle East conflict dramatically Thursday, with its military warning that oil prices could reach $200 a barrel while its forces simultaneously struck energy targets across four Gulf nations. The dual escalation — military and verbal — kept Brent crude near $100 a barrel and rattled investors who had been hoping for signs of de-escalation. There are no indications that either side is ready to step back from the confrontation.
Iranian forces struck merchant ships near the Strait of Hormuz, fuel tanks in Bahrain, oil tankers near Iraq’s export ports, and facilities adjacent to Oman’s Mina Al Fahal terminal. The Thai-registered Mayuree Naree was among the vessels struck, with three crew members believed trapped. Iraq suspended all crude exports and Oman evacuated its main terminal.
Brent crude gained 9% Thursday to briefly touch $100.29 before settling at $98, still up 6% on the day. West Texas Intermediate rose 8.6% to $94.75. Oil has climbed from $60 at the year’s start to a peak of $119 this week. The Strait of Hormuz has been closed since February 28, blocking about a fifth of the world’s seaborne oil and gas.
The IEA released 400 million barrels of emergency crude from 32 member nations in a record coordinated action. The United States contributed 172 million barrels from its Strategic Petroleum Reserve. President Trump pledged to press ahead with the military campaign and said prices would fall as the conflict concludes.
Goldman Sachs raised its Q4 2026 Brent forecast to $71 per barrel. Deutsche Bank warned of stagflation risks. Japan’s Nikkei fell 1.6%, South Korea’s Kospi lost 1.2%, and European gas prices gained 7.7%.