Oil prices could rise to $200 a barrel due to the war between the U.S. and Iran, according to Bloomberg

The global economy is facing the threat of a serious energy crisis. If the conflict over Iran continues into the summer, the price of a barrel of oil could reach $200.

This is reported by Bloomberg.

A key factor in the price shock is Iran’s control of the Strait of Hormuz—one of the world’s most critical energy transport routes, through which about 20% of global oil consumption passes.

Analysts note that the price of Brent crude is already approaching a record monthly increase in March due to tensions between the U.S., Israel, and Iran. The conflict has led to the de facto closure of the Strait of Hormuz, which restricts energy supplies and threatens the stability of the global economy.

“If the strait remains closed for an extended period, prices are likely to surge enough to reduce the historically high global demand for oil. The timing of the strait’s reopening and potential infrastructure damage will determine the long-term impact on the energy market,” experts note.

As a reminder, the price of Brent crude last reached around $108 per barrel last Friday, after hitting $119.50 in the middle of the month. For comparison, Brent’s all-time high in nominal terms was $147.50 per barrel in 2008.

As a reminder, oil prices on global markets recorded their sharpest weekly decline in the last six months.

As a reminder, oil has remained above $100 following the resumption of Iraqi supplies.

Oil prices also fell sharply amid expectations of a ceasefire in the Persian Gulf.