Global oil and gas prices jumped sharply on Thursday after Iran launched attacks on key energy infrastructure in the Gulf, raising fears of a prolonged disruption to global supply.
The strikes targeted a major gas facility in Qatar, as well as oil refineries in Kuwait, in what analysts say could mark a dangerous escalation in the ongoing conflict in the Middle East.
The Iranian attack hit the Ras Laffan industrial hub, a critical export terminal for liquefied natural gas. The facility, operated by QatarEnergy, was forced to shut down after the strike triggered fires and caused significant damage.
Qatar is one of the world’s largest suppliers of liquefied natural gas, accounting for roughly a fifth of global demand, making the disruption a major blow to international energy markets.
The situation has been worsened by the near shutdown of the Strait of Hormuz, a vital route through which a large share of the world’s oil and gas is transported. With tanker movement severely restricted, supply chains have come under intense pressure.
As a result, Brent crude surged to over $116 per barrel, a sharp rise from levels below $73 before the conflict began. Natural gas prices also climbed significantly, with Europe’s benchmark posting a steep increase.
The impact was immediately felt across global markets. Major stock indices in Europe and Asia recorded losses, as investors reacted to fears of rising energy costs and broader economic instability.
Economists warn that if the disruption continues, it could push inflation higher worldwide, increasing the cost of goods and slowing economic growth.
In Asia, markets in Japan, South Korea, Hong Kong and China all closed lower, reflecting concerns among countries that rely heavily on imported energy.
Similar trends were seen in Europe, where key indices in Germany, France and the United Kingdom also declined.
In the United States, oil and gas benchmarks rose, while stock markets slipped amid uncertainty over how long the crisis will last.
Officials say the situation remains fluid, with no clear indication yet of when normal supply routes will resume. Analysts warn that continued attacks on energy infrastructure could deepen the crisis and keep prices elevated in the coming weeks.
