Prepare for oil at $200 a barrel, Iran says

Americans are already seeing the effects of the U.S.-Israel war against Iran when they go to fill up their cars with gas — and it’s only set to get worse.

Iran warned Wednesday that oil prices could double from their current prices.

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“Get ready ​for oil [to] be $200 a barrel, because the oil price depends on regional security which you have destabilised,” Ebrahim Zolfaqari, spokesperson for Iran’s military command, said, according to Reuters.

The country’s military command made the statement after three more ships were hit in the Persian Gulf, highlighting how unsafe it remains for ships to pass through the Strait of Hormuz.

Brent crude futures, the oil benchmark, hit around $90 on Wednesday. They had briefly reached a peak of $120 on Monday, but then declined after President Donald Trump said he expected the war to be over soon. They’ve risen at least 50% since the start of the war.

Iran said Wednesday that no oil will be allowed to pass through the Strait of Hormuz until the U.S. and Israel stop their bombing campaigns, while Trump said if Iran blockades the Strait, he will intensify the bombings.

For Americans, this all spells higher gas prices. The first wave of increases is already here, and simple enough to understand: When gas stations know their next delivery will cost more, they usually raise prices preemptively, before the more expensive fuel even arrives. The result is that pump prices tend to respond to crude spikes faster than the strict underlying supply-chain economics. Some experts are predicting gas will rise to $4 or even $5 a gallon over the next few weeks, even as G7 governments are actively discussing offramps.

—Catherine Baab contributed to this article.

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