Iranian authorities have issued a stark warning that oil prices could skyrocket to $200 per barrel as the Islamic Republic escalates its military campaign in the strategic Strait of Hormuz, vowing to halt all petroleum shipments to the U.S. and its allies.

The warning follows as at least three vessels were struck by projectiles in the vital chokehold on Wednesday, March 11.

The price rise to $200 per barrel has impacts beyond geopolitical sabre-rattling, directly affecting household budgets globally.

The most immediate impact hits drivers worldwide.

It is expected that the gas prices could surge in the United States past $6 per gallon. Europeans, already paying $6 to $8 per gallon with taxes, can see prices reaching $10 or more.

In developing nations of the region, the fuel costs could become unbearable, forcing families to choose between commuting and eating.

In addition to oil prices, fertilizer prices are also at risk. The World Food Programme warns that every dollar increase in oil prices pushes millions closer to hunger.

Heating homes and electricity demand will follow crude prices upwards.

For Europe, which is currently in the grip of an energy crisis, heating costs in winter may no longer be affordable for millions of people.

For developing countries, where governments often heavily subsidize electricity costs, it may mean severe cuts in other areas of public expenditure or even power outages.

Air conditioning in sweltering summers in the Middle East and South Asia may no longer be affordable.

The conditions can create a ripple effect affecting everything, everywhere, all at once.

Manufacturing grinds slower when energy costs soar. With high energy prices, manufacturing grinds to a halt.

In China, factories are already facing impossible margins.

Retailers from Lagos to London raise prices. Airlines tack on fuel surcharges, making travel prohibitive for ordinary families.

Additionally, ride-hailing services are becoming too expensive, and delivery apps are adding fees.

The International Monetary Fund (IMF) issued a stark warning that sustained $200 oil could shave 1.5 to 2% points off global GDP, which is enough to tip multiple economies into recession.

Although the conflict lies between the U.S., Israel, and Iran, the whole world is paying the price. 

The International Energy Agency (IEA) has authorised the historic release of 400 million barrels of oil to address the shortage caused by supply disruptions amid intensifying tensions in the Middle East.

The decision comes after Iran announced the closure of the Strait of Hormuz, a critical passage through which much of the world’s oil supply passes, following U.S.–Israeli joint military strikes on Iran.

The announcement, made on Wednesday, did not set out a timeline for the release of oil stocks. However, it added that the oil would be released in appropriate time depending on the circumstances of the 32 member states.

For context, IEA was formed in 1974 to maintain global energy security in response to the 1973 Arab oil embargo. It primarily consists of advanced economies from Europe, North America and Northeast Asia.

Speaking at the organisation’s headquarters in Paris, the IEA Executive Director Fatih Birol said that considering the significant impacts of the conflict in the Middle East on global oil, gas markets, energy security and global economy for oil, “I can now announce that IEA countries have unanimously decided to launch the largest-ever release of emergency oil stocks in our agency’s history.”

The agency holds over 1.2 billion barrels of oil in public emergency reserves, along with around 600 million barrels of industry stocks held under government obligations

Birol said the release would help mitigate immediate effects of the closure of the Strait of Hormuz. 

The normal flow of traffic from the Strait is needed to bring oil and gas flows back to the global market. 

The royal family’s untiring couple, Duchess Sophie and Prince Edward, pulled at the heartstrings of sports fans with their charm and support at the MilanoCortina2026 Winter Paralympic Games.

The Duke and Duchess of Edinburgh spread love and harmony as they cheered on ParalympicsGB.

Sophie, 61, looked stunning as she wore a striking red Adidas puffer jacket while engaging in conversation with an athlete.

On Wednesday, the royal family’s official Instagram account shared candid moments of the couple watching British athletes in action across multiple events and met members of the team competing in the Games.

The Duke of Edinburgh celebrated his 62nd birthday at the Paralympic Winter Games in Cortina D’Ampezzo, Italy, where he was joined by his wife Sophie.

The royal couple appeared in good spirits as they mingled with attendees at the Paralympic village.

Edward, who has served as Patron of the British Paralympic Association since 2003, dressed warmly in official event merchandise for the occasion.

The event kicked off on Friday, March 6 and will run through this Sunday, March 15. Buckingham Palace posted the video to social media over the weekend.

The couple’s joint outing comes days after Edward was forced to withdraw due to illness from a ceremony and reception for the 2026 Queen Elizabeth Prizes for Education at St. James’s Palace, where he had been expected to appear alongside King Charles, Queen Camilla, Princess Anne, and the Duke and Duchess of Gloucester.