Trump insists Iran war will lower fuel costs despite Tehran threats to spike crude prices to $200-a-barrel

Speaking in Kentucky, the President said that US-Israeli strikes in the Middle East, dubbed Operation Epic Fury, would reduce the cost of fuel.

Trump said the war will "substantially reduce oil prices" and reduce the threat to the world.

"Our military has virtually destroyed Iran," he said.

During the event at a packing factory, Trump touted the success of the military operations in Iran, saying that America destroyed Iran's navy and air force in a matter of hours.

"We won," the president said to his crowd of supporters. "In the first hour it was over."

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He then claimed for the first time that the US has "knocked out" 54 Iranian ships in two days, before revising the figure to 58.

Despite Trump's pronouncements on oil prices, three cargo ships in the Strait of Hormuz were allegedly been attacked by Iran on Wednesday.

The attacks on Wednesday morning caused one of the vessels to burst into flames and its crew to evacuate.

A second ship, a bulk ‌carrier, was hit by a projectile 50 ‌miles ⁠north-west of Dubai. The United Kingdom Maritime Trade Operations (UKMTO) said that its crew was safe.

A third freighter was also reportedly damaged near Dubai. It is not immediately clear who launched the projectiles but Iran previously claimed control of the shipping lane which is a crucial route for global oil shipments.

Oil companies are being told to prepare for "catastrophic consequences" caused by the conflict.

According to reports, Iran's Islamic Republic News Agency has claimed that the Islamic Revolutionary Guard Corps has attacked the Thai-flagged bulk carrier Mayuree Naree for failing to heed their warning not to transit.

After the strikes, Iran's military command warned on Wednesday that the world should prepare for oil to hit $200 a barrel.

Read more: Trump threatens Iran with 'death, fire and fury' if they stop the flow of oil in the Strait of Hormuz

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The world's oil markets have been warned to expect "catastrophic consequences" if the conflict continues.

Amin Nasser, the CEO of Aramco, said: "While we have faced disruptions in the past, this one by far is the biggest crisis the region's oil and gas industry has faced.

"There would be catastrophic consequences for the world's oil markets, and the longer the disruption goes on, the more drastic the consequences for the global economy."

It comes after Donald Trump said on Tuesday that the US has hit and "completely destroyed" 16 inactive mine-laying boats.

The President initially claimed that the US had "no reports" of mines being laid, but went on to post on his Truth Social account to boast of US strikes on "inactive" mine-laying ships.

The UKMTO said it received reports of the first attack in the Gulf around 11 nautical miles north of Oman on Wednesday morning. 

Posting on X, the US Central Command wrote: "U.S. forces eliminated multiple Iranian naval vessels, March 10, including 16 minelayers near the Strait of Hormuz."

It also accompanied the post with a video of one of the strikes.

US Defence Secretary Pete Hegseth previously said that the US will not stop its war in the Middle East until Iran was "totally and decisively defeated."

He said Tuesday would see the highest number yet of fighters, bombers and attacks since the conflict began.

The US and Israel launched more strikes across the Middle East on Wednesday after the Iranian Government warned Trump to "be careful not to be eliminated."

Overnight, the US and Israel traded air strikes with Iran across the Middle East on Wednesday as the besieged Tehran government warned its state security forces were ready with 'fingers on the trigger' to confront any anti-government protests.

Concerns have grown around access to a key trade route for oil tankers in the Strait after Iran launched retaliatory strikes to the conflict.

The narrow opening of the Persian Gulf acts as a vital shipping route for the global oil trade and saw at least 150 tankers drop anchor in the open Gulf waters last week.

The crisis led to Brits being urged to "drive less" in an attempt to save fuel amid soaring global oil prices, which are expected to have a knock-on effect on fuel costs.

President Trump also threatened Iran with "death, fire, and fury" if they stopped the flow of oil in the Strait.

He wrote on Truth Social: "If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.

"Additionally, we will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!"

The price of crude oil surged past $100 a barrel on Monday, and the restricted flow of oil from the Middle East could see prices "jump to between 150p and 170p per litre" over the coming weeks.

It's the first time prices have seen such a surge since 2022 following the outbreak of war in Ukraine.

Since the war began on February 28, the average price of a litre of petrol at UK forecourts has increased by 5p to 137.5p, while diesel is up 9p to 151.0p.

On Monday, drivers were discouraged from taking ‘non-essential’ car journeys in a bid to save fuel.

RAC head of policy Simon Williams said: "Average petrol and diesel prices have rocketed in the last week and are unfortunately likely to keep on rising, so the situation for UK drivers is looking increasingly bleak.

"Unleaded is almost certainly going to reach an average of 140p in the next week or so, while diesel looks highly likely to climb to at least 160p a litre.

"We encourage drivers to continue filling up as normal but to shop around for the best prices."