Crude Oil Skyrockets As Iran Toughens Its Position Against U.S., Israel

(RTTNews) - Crude oil catapulted on Thursday as new leadership in Iran declines to bow down to U.S. pressure in the raging Middle East war and instead vowed revenge, threatened U.S. allies, and resolved to ramp up attacks.

WTI Crude Oil for April delivery was last seen trading up by $7.45 (or 8.54%) at $94.70 per barrel.

The Middle East war that began following the U.S.-Israeli combined attacks on Iran on February 28 entered day number 13 today without any sign of a de-escalation.

In his maiden message to the public after assuming office, Iran's new Supreme Leader Mojtaba Khamenei (son of slain leader Ayatollah Ali Khamenei) issued a stern warning to Iran's neighbors against harboring U.S. bases.

Khamenei's address was read by a news anchor on state television in which he vowed to avenge all Iranians killed in the war.

Expressing gratitude to the "Resistance Front" comprising Yemen's Houthi militia and Lebanon's Hezbollah, Khamenei also affirmed that Iran will never retreat in this war but would resist with "full force."

Asserting Iran would obtain compensation from its "enemy," Khamenei went on to add that the blockade of the Strait of Hormuz will continue as Iran wants to use it as a tool to pressure the U.S. and Israel to halt their attacks.

The 55-kilometer-wide waterway between Iran and Oman which separates the Persian Gulf from the Arabian sea is critical for the transit of around one-fifth of global oil shipments with nearly 13 million barrels of oil per day moving through these waters.

Already, Iran has avowed not to let even a liter of oil to pass through the channel.

Yesterday, Iran's President Masoud Pezeshkian suggested that, for the war to end, Iran should be compensated for war-inflicted damages and be offered international assurances against future attacks.

After reports of Iran laying water mines near the Strait of Hormuz surfaced, U.S. President Donald Trump warned the nation of unprecedented consequences if it does not remove those mines immediately though Iran brushed aside the threats.

Late-night attacks on two fuel tankers (Safesea Vishnu and Zefyros) in Iraqi waters by explosive-laden Iranian boats set them ablaze, prompting Iraq to shut down its oil ports.

Oman has ordered an evacuation of vessels from the country's Mina Al Fahal oil port after Wednesday's Iranian attack at the Port of Salalah.

The International Energy Administration on Wednesday announced the release of 400 million barrels from the strategic reserves of member countries. Despite the planned intervention, markets remain focused on the large-scale disruption due to the deepening conflict in the Middle East.

Transit obstacles through the Strait of Horzmuz has resulted in storage constraints for several Arab nations, forcing them to scale down their output production.

Ebrahim Zolfaqari, the spokesperson for Iran's Khatam al-Anbiya military command headquarters stated that the world must "get ready for oil to be $200 a barrel."

Meanwhile, despite the severe impact on global supply chains caused by the U.S.-Israel versus Iran war, in its latest monthly report, the Organization of Petroleum Exporting Countries maintained its 2026-27 global oil demand growth projection, with the forecast for 2026 at 1.38 million barrels per day and for 2027 at 1.3 million barrels per day.