Iran Threatens War Expansion, Sends Oil Prices Soaring Above $106

Oil prices surged on Thursday after an Iranian military official threatened to expand the war in the Middle East to the Indian Ocean if attacked. The Brent futures price jumped more than 3% to above $106.

The threat was made by a senior military advisor to Iran's supreme leader, who spoke to Fars News Agency. The official warned that Tehran may broaden the conflict if it comes under attack from the US or Israel.

This development is significant because it undermines any progress that had been hoped for from talks between US and Iranian officials at the UN General Assembly in New York. Those conversations had raised hopes of a possible resolution to the standoff, which could have stabilized energy transit through the vital Strait of Hormuz.