Saudi officials have cautioned that oil prices could surge to $180 per barrel by late April if the Iran war continues disrupting critical Middle East energy supplies and global markets.
The warning comes as attacks on oil and gas infrastructure across the Gulf, including Saudi facilities at Yanbu and Qatar’s Ras Laffan, have already removed millions of barrels from global supply, pushing prices sharply higher.
Benchmark Brent crude briefly climbed to $119 per barrel, while Oman crude futures surged past $166, reflecting tight supply. Analysts warn that sustained disruptions could even drive crude toward $200 per barrel in extreme scenarios.
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Saudi projections indicate oil may reach $150 by mid-April, $165 in subsequent weeks, and eventually $180 if the Strait of Hormuz remains closed, with traders increasingly betting on higher prices in options markets.
Experts say prolonged prices above $150 could trigger “demand destruction,” forcing consumers to reduce travel, shift to public transport, delay spending, and prompt manufacturers to scale down production, affecting global economic growth.
Rising fuel costs are already hitting consumers worldwide. In the US, gasoline reached $3.88 per gallon and diesel $5.10, while energy-importing regions in Europe and Asia face inflationary pressures, weakening currencies, and strained industrial output.
Saudi Aramco is closely monitoring conditions to set April selling prices, with the market’s direction depending on geopolitical developments, supply recovery, and global economic resilience, leaving energy markets highly volatile.