MOSCOW, March 4. /TASS/. The price of oil could reach $200 per barrel due to the closure of the Strait of Hormuz by Tehran, Iranian Brigadier General Ebrahim Jabbari, an adviser to the commander of the Islamic Revolutionary Guard Corps (IRGC, elite units of the Iranian Armed Forces), said.
Major European stock exchange indices closed lower again on Tuesday, trading data showed.
TASS has compiled the main facts on the economic situation amid Middle East tensions.
Situation with oil prices
The price of oil could reach $200 per barrel due to the closure of the Strait of Hormuz by Iran, IRGC commander adviser Brigadier General Ebrahim Jabbari said.
Stock exchange trading on Tuesday closed with a sharp drop in indices amid news of widening conflict in the Middle East, The Wall Street Journal wrote.
The price of futures contracts of Brent crude oil has exceeded $85 per barrel for the first time since mid-2024.
Queues have started to appear at petrol stations in Ukraine amid soaring gasoline prices due to escalation in the Middle East, the Strana publication reported.
Gasoline prices are increasing daily, with the cost of a liter of AI-95 (premium) gasoline rising from 63 to 72 hryvnia (from 112 to 128 rubles) over the past 24 hours, according to the report.
The cost of motor fuel in the US has soared since the start of the US-Israeli military operation against Iran, The New York Times reported, citing the AAA automobile association.
On Tuesday, the average price of a gallon (3.785 liters) of gasoline rose about 10 cents to $3.11 compared to less than $3 on Monday.
The rise in the cost of gasoline, diesel fuel, and liquefied gas at Polish gas stations is becoming dramatic, the Dziennik.pl Internet portal wrote.
Prices of gasoline of all brands and diesel of all grades have increased on the St. Petersburg International Commodity Exchange (SPIMEX), according to Tuesday trade data.
In particular, the price of AI-92 gasoline increased 2.65% to 61,792 rubles per ton, while the price of AI-95 rose by 2.6% to 65,049 rubles per ton.
The price of diesel fuel showed less significant growth, as the price of summer diesel increased by 1.38% (to 57,288 rubles per ton), the price of off-season diesel rose 1.81% (to 56,743 rubles), while the price of winter diesel edged up 0.7% to 62,249 rubles per ton.
The price of fuel oil rose 27.17% to 19,913 rubles per ton. The price of liquefied hydrocarbon gas increased 2.03% to 23,687 rubles, while jet fuel rose 0.83% to 74,347 rubles per ton.
Stocks
Trading on the New York Stock Exchange closed significantly lower as key indices lost 0.8-1%, according to trade data.
The London Stock Exchange’s FTSE 100 index, which is based on the stocks of the 100 largest companies by capitalization, closed Tuesday down 2.7% due to the escalating conflict in the Middle East.
The MOEX Index with additional IMOEX2 ticker fell 0.27% as the morning trading session started on the Moscow Exchange at 7:00 a.m. Moscow time (4:00 a.m. GMT), reaching 2,817.39 points.
Trading on Asia’s largest Tokyo Stock Exchange ended Wednesday with another drop amid ongoing Middle East tensions, trading data showed.
The key Nikkei index, which reflects fluctuations in share prices of 225 leading Japanese companies, was down 3.61% at 54,245.54 points by the end of the afternoon session.
Prices on the Tokyo Stock Exchange have been declining for the third consecutive day, with the Nikkei having lost all its gains of the last month during this period.
Precious metals
Prices of futures on precious metals — platinum, palladium, gold, and silver — on the New York Mercantile Exchange (NYMEX) and the Comex exchange (a division of NYMEX) have been falling sharply within 10% amid the Middle East escalation, according to trade data.
As of 4:25 a.m. Moscow time (1:25 a.m. GMT), the price of palladium futures for June 2026 delivery was down 7.31% at $1,701.5 per troy ounce on NYMEX, while the price of platinum futures for April 2026 delivery was down 10.34% at $2,126 per troy ounce.
The price of gold futures for April 2026 delivery on the Comex exchange was down 3.54% at $5,161.5 per troy ounce, while silver futures for March 2026 delivery were down 6.05% at $83.6 per troy ounce.
Shutdown of Strait of Hormuz
Iran’s Navy completely controls the Strait of Hormuz, with ten oil tankers attempting to cross having been struck by missiles and drones, Mohammad Akbarzadeh, Spokesman for the IRGC, announced.
Only two tankers crossed the Strait of Hormuz on Monday, CNN reported, citing data from S&P Global Commodities at Sea.
Seven tankers loaded with Iraqi oil are unable to leave Iraq’s territorial waters due to the danger of crossing the Strait of Hormuz, a representative of the country’s sea port service said.
More than 3,000 vessels are waiting in Gulf ports for the ability to pass through the Strait of Hormuz, The Wall Street Journal (WSJ) reported Tuesday, citing Clarksons Research maritime data.
On March 2, the Islamic Revolutionary Guard Corps threatened to burn any tanker attempting to cross the Strait of Hormuz.
US President Donald Trump’s administration is considering providing military protection to oil and gas tankers passing through the Strait of Hormuz, Politico reported, citing sources.
Shale oil
US shale oil producers won’t be able to ramp up output quickly amid rising prices for fuel due to the worsening situation in the Middle East, The Financial Times wrote, citing industry managers and experts.
According to Pioneer Natural Resources founder Scott Sheffield, US companies won’t dare expand production unless they’re confident high oil prices will persist for a long period.
JPMorgan analyst Natasha Kaneva noted that shale oil production volumes can only be increased gradually, with the introduction of new capacity taking months.
Interest in Russia
Russian President’s Special Representative for Investment and Economic Cooperation with Foreign Countries, CEO of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev said that cooperation with Moscow remains a profitable and promising option for partners.
India is considering increasing oil purchases from Russia amid the conflict in the Middle East, the ANI news agency reported.
Russia can once again become a major source of energy security for India and help alleviate the critical situation with energy supply, The Economic Times wrote.
Russia sees increased demand for its oil from India for subsequent refining, Russian Deputy Prime Minister Alexander Novak told Channel One.
Forecast
Serbian President Aleksandar Vucic projected severe consequences for Europe due to further blockade of the Strait of Hormuz as escalation continues in the Middle East, N1 TV channel reported.
Energy markets were the first to be affected by the conflict around Iran, and in the future this will hit Europe’s energy and inflation, Turkish Foreign Minister Hakan Fidan said on air on TRT.
German Chancellor Friedrich Merz acknowledged that the conflict around Iran is hurting Germany’s economy and driving gas and oil prices higher.
Prolonged suspension of liquefied natural gas (LNG) supplies from Qatar following Iran strikes will impact demand in Asia, as well as the wallets of consumers in Europe who will have to buy gas at inflated prices, Alexey Belogoryev, research director at the Institute for Energy and Finance Foundation, told TASS.
In Qatari LNG sales, the share of long-term contracts reaches 90%, which is why supply disruptions hit, above all, the holders of these contracts, forcing them to enter the spot market, with spot prices rising, according to the expert.