Saudi Officials Warn Oil Could Hit $180 as Hormuz Disruptions Threaten Global Energy Supply

Projected surge could drive U.S. gasoline above $7 per gallon and raise concerns over recession and long-term demand shifts.

By yourNEWS Media Newsroom

Saudi officials are warning that crude oil prices could climb to $180 per barrel or higher if disruptions tied to the ongoing Iran conflict continue, a scenario that analysts say could push gasoline prices in the United States above $7 per gallon.

The projections, cited in a Wall Street Journal report, reflect growing concern among Gulf energy leaders that prolonged instability in key shipping routes and infrastructure could significantly tighten global supply.

Brent crude has already surged to approximately $119 per barrel following repeated attacks on energy facilities across the Gulf. Analysts estimate prices have risen by roughly 50 percent since hostilities escalated in late February, as large volumes of oil production have been removed from the market.

A central factor driving the spike is the disruption of traffic through the Strait of Hormuz, a vital corridor for global energy transport. Prior to the conflict, Saudi Arabia exported as much as 6 million barrels per day through the waterway, which also serves as a key route for shipments from Iraq, Kuwait, and the United Arab Emirates.

With the strait largely inaccessible, producers across the region have been forced to scale back exports due to limited alternative routes. Saudi Arabia has redirected some shipments through its East-West pipeline to the Red Sea port of Yanbu, where export volumes are expected to reach a record 3.8 million barrels per day this month.

Despite those adjustments, officials say the alternative infrastructure cannot fully offset the loss of throughput from Hormuz, leaving global markets vulnerable to continued shortages.

Additional pressure on supply has come from attacks targeting refining and processing facilities, further constraining output and increasing uncertainty in energy markets.

Trading activity reflects growing concern over future price escalation, with options markets showing increased positioning around oil reaching $130, $140, and $150 per barrel in the near term.

The impact is extending beyond oil. Strikes linked to Iranian-backed forces have affected a major liquefied natural gas facility in Qatar, raising the risk of disruptions to global gas supplies. Europe and Asia, which rely heavily on imported LNG, could face significant shortages if outages persist.

The combination of reduced oil flows, infrastructure damage, and potential gas supply interruptions has heightened fears of a broader energy shock. Central banks are monitoring the situation closely, with Federal Reserve Chair Jerome Powell warning that sustained increases in energy prices could slow economic growth while simultaneously driving inflation higher.

Saudi officials have also expressed concern that extreme price increases could alter long-term consumption patterns. Higher costs may accelerate shifts toward alternative energy sources, reduce travel demand, and encourage changes such as increased remote work, all of which could affect future demand for crude oil.

As the conflict continues and supply constraints persist, global energy markets remain under pressure, with price volatility expected to continue in the coming weeks.