A senior official in Iran’s Islamic Revolutionary Guard Corps has declared the Strait of Hormuz closed and threatened to set fire to any vessel that tries to pass through, dramatically escalating fears of a global energy shock amid rising hostilities in the Middle East.
The warning, issued as oil and gas markets wobbled, signaled Tehran’s willingness to use the weapon on one of the world’s most critical maritime choke points in retaliation for an Israeli and US bombing campaign that began on Saturday and killed Iran’s Supreme Leader Ayatollah Ali Khamenei and other senior officials.
IRGC threatens to ‘set fire to these ships’
Ebrahim Jabari, a senior adviser to the supreme commander of the Islamic Revolutionary Guard Corps, delivered the stark message in comments carried by Iranian state media.
“The strait is closed. If anyone tries to pass through, the heroes of the Revolutionary Guards and the regular navy will set fire to those ships,” he said on Monday.
The Strait of Hormuz, which lies between Iran and Oman, holds roughly a fifth of the world’s oil reserves. Even a proposal to close it is enough to shake up the commodity markets, even through diplomatic channels.
Jabari went further and outlined an expansive energy offensive. “We will also attack oil pipelines and not allow a single drop of oil to leave the region. The price of oil will reach $200 in the coming days,” he said in a post on the IRGC’s Telegram channel.
He added: “Americans with thousands of billions of dollars in debt are dependent on the region’s oil, but they should know that not a drop of oil will get to them.”
Energy markets are shaken by a sharp increase in gas prices
Energy prices reacted quickly to growing threats and reported outages. Natural gas prices rose nearly 50 percent in Europe and nearly 40 percent in Asia after QatarEnergy suspended production of liquefied natural gas following attacks on its facilities.
Earlier in the day, Saudi Arabia’s Ras Tanura oil refinery – capable of processing more than half a million barrels of oil per day – was targeted by drones, according to a military spokesman quoted by the Saudi Press Agency. Air defenses reportedly intercepted the incoming aircraft.
The cumulative impact of tanker disruptions, threats to refineries and potential attacks on pipelines has heightened concerns about the stability of global supply chains. Analysts warn that a permanent closure of Hormuz or a credible attack on regional infrastructure could push oil prices to the $200 mark indicated by Jabari, levels not seen in modern energy markets.
A strategic critical point at the heart of global oil flows
The Strait of Hormuz has long been considered the most strategically sensitive maritime corridor in the world. Around 20 percent of global oil consumption passes through its narrow waters every day, making it indispensable to both Asian and European economies.
A full shutdown would reverberate far beyond the Gulf, adding to inflationary pressures and complicating monetary policy across major economies already grappling with geopolitical volatility.
The US has promised measures to limit the price shock
Washington has indicated it will act quickly to mitigate the economic impact. Secretary of State Marco Rubio said the United States anticipates market turbulence and will act to mitigate its impact.
“Starting tomorrow, you’re going to see us put these phases in place to try to mitigate that … We anticipated that this could be a problem,” Rubio said.
