• Iran's Revolutionary Guard threatens to attack ships in the Strait of Hormuz.
• Oil prices have surged, with Brent crude exceeding $85 per barrel.
• About 20% of global oil flows pass through the Strait of Hormuz.
• Rising tensions between Iran and US-Israel forces escalate supply concerns.
• Insurance costs for shipping in the region have skyrocketed amidst rising conflicts.

Iran has issued severe warnings regarding the Strait of Hormuz, declaring it "closed" and threatening to attack any vessel attempting to navigate the passage. Ebrahim Jabari, an adviser to Iran's Revolutionary Guard Corps (IRGC), stated, "If anyone tries to pass, the heroes of the Revolutionary Guard... will set those ships ablaze," solidifying Tehran's stance on defending its waters in retaliation for US and Israeli strikes that began recently, including an attack that killed Iran's Supreme Leader Ayatollah Ali Khamenei, according to Channel News Asia and Al Jazeera.

The closure of this critical route, which facilitates approximately 20% of the world's oil and gas shipments, has triggered a crisis in oil markets. As reports of heightened shipping traffic disruptions emerge, Brent crude oil prices surged over 8% to exceed $85 per barrel, reflecting fears of prolonged geopolitical tensions affecting global supply chains, according to India Times and Africanews.

Tankers have already been targeted by Iranian forces, resulting in damage to vessels and effectively halting shipping operations in the area. Reports indicate that at least five tankers have sustained significant damage, and combined with soaring freight costs, the outlook for international oil transport has become increasingly bleak, as detailed by Al Jazeera and BBC.

In response to ongoing attacks, Jabari has warned that oil prices could escalate to as high as $200 per barrel if these hostilities continue. This potential price spike reflects broader concerns about energy availability and escalating military conflicts, emphasizing Iran's readiness to disrupt the region's critical economic infrastructure, as reported by India Times and India Times.