Iran’s Islamic Revolutionary Guard Corps (IRGC) has issued a stern warning that oil prices could reach $200 per barrel after the International Energy Agency (IEA) announced the release of 400 million barrels from emergency stockpiles, which is the largest coordinated drawdown in the agency’s history.
The escalation occurs as Iranian forces have effectively shut down the Strait of Hormuz, a vital chokepoint that accounts for roughly 20-25% of global seaborne oil trade.
Since the US-Israel conflict with Iran escalated on February 28, 2026, flows through the Strait have fallen to less than 10% of normal levels. “Not a litre of oil will pass through the Strait of Hormuz,” an IRGC spokesperson stated today. “You will not be able to artificially lower the price of oil.
Expect oil at $200 per barrel.” The statement directly targeted the IEA’s move, adding that oil prices “depend on regional security, which the US and Israel have destabilized.”
Iran also reported further attacks on shipping in the Gulf today, emphasizing its resolve to maintain the blockade.
In response, the IEA’s 32 member countries unanimously approved releasing 400 million barrels from strategic reserves.
IEA Executive Director Fatih Birol described the action as “unprecedented in scale” and emphasized that “oil markets are global, so the response to major disruptions needs to be global too.”
The release exceeds the 182 million barrels coordinated in 2022 following Russia’s invasion of Ukraine.
Contributing countries include Japan (about 80 million barrels starting Monday), Germany, Austria, and others, with drawdowns scheduled based on each country’s domestic needs.
Brent crude futures increased by as much as 5% but settled around $91–92 per barrel, still below earlier peaks above $100.
Traders are balancing the immediate relief from the reserve release against the potential for a prolonged disruption.
Administrator and Writer
