Brent Crude (BZ), the international benchmark for oil, has risen by more than 30% over the past month to $90 per barrel. However, Iran has warned that the price will more than double to $200.
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New trading tool for QQQ bulls“Get ready for the oil barrel to be at $200 because the oil price depends on the regional security which you have destabilized,” said Iranian military spokesperson Ebrahim Zolfaqari. He added that Iran won’t allow the U.S., Israel, and their partners to receive “even one liter of oil” by targeting tankers making their way to them.
Oil Flows Stalled as IEA Considers Record Reserves Release
Traffic through the Strait of Hormuz, which handles roughly 20% of global oil flows, has come to a near standstill due to Iran’s threats. Later today, the International Energy Agency (IEA) will hold a meeting to decide on releasing up to 400 million barrels of oil from reserves. That’s more than double the previous record of 182 million barrels, which was set after Russia invaded Ukraine in 2022.
Analysts have warned that oil at $150 could trigger demand destruction, which occurs when high prices force consumers and businesses to reduce usage, switch to alternatives, or postpone purchases.