Oil hits $117 as Iran bars US Navy from Gulf

The price of Brent crude oil climbed to approximately $117 per barrel on Saturday. This marks the highest level for the benchmark since April. The spike follows renewed military threats from Iran and ongoing disruptions to shipping lanes in the Persian Gulf.

Ali Abdollahi, the chief of general staff for Iran's armed forces, issued a statement through state media on Saturday morning. He declared that the United States Navy cannot re-enter Iranian territorial waters or the surrounding areas. Abdollahi stated that Iran possesses the capability to target any vessel in the region. "The US president can only dream of their soldiers and military again entering the Persian Gulf," he said.

President Donald Trump addressed supporters at a rally in Florida on Friday. He indicated that the United States has not finalized its next strategic move in the conflict. Trump suggested the US military "may do another Epic Fury," referencing the large-scale bombing campaign that began at the start of the war. He weighed the option of ending the fighting quickly with massive strikes against allowing the naval blockade and sanctions to continue squeezing Tehran.

Shipping activity around the Strait of Hormuz remains under threat. The Islamic Revolutionary Guard Corps reported that seven tankers were attacked or hit mines overnight into Thursday. On Friday, the group claimed that two supertankers struck mines. These incidents have unsettled the global energy market and pushed prices higher.

Abdollahi criticized American rhetoric as contradictory in his statement. He argued that US claims of having destroyed Iran's military capabilities are inconsistent with Washington's decision to keep aircraft carriers and support ships away from Iranian territory. The Iranian official said forces intend to "drown" the US and Israel in a "quagmire" in retaliation for a surprise attack on February 28 that started an eight-month war.

Diplomatic efforts have stalled without the presence of the two main parties. Senior diplomats from Turkiye, Saudi Arabia, Pakistan, and Egypt met with counterparts from the UK, France, Germany, and Italy in Istanbul on Friday. Turkiye's Foreign Minister Hakan Fidan said a new attack on Iran would widen the war. He added that "no one is endorsing it at this point." German Foreign Minister Johann Wadephul blamed Iran and the Houthis for regional instability, while the four regional ministers cited Israeli occupation as the main source of instability.

Washington has reportedly ordered many diplomatic staff to leave Saudi Arabia, with others scheduled to depart from additional countries in the region. Axios cited US intelligence reporting on Saturday that Iran has "substantially increased" efforts to strike American officials in the Middle East and elsewhere. The IRGC has also threatened seabed internet and communication cables if civilian infrastructure is targeted again.