Global energy markets jumped Thursday after Iran launched attacks on major oil and gas facilities across the Middle East, raising fears of a deeper supply crisis as the conflict involving Iran, Israel and the United States intensifies.
Oil and Gas Prices Spike
Brent crude climbed above $114 per barrel after briefly reaching $119, while European gas prices surged 28% to 74 euros per megawatt hour — their highest level since January 2023. Analysts said the attacks marked a major turning point because the war is now directly disrupting critical energy infrastructure, not just military targets.
Key Energy Sites Hit Across Gulf
Iran’s strikes reportedly caused extensive damage at Qatar’s Ras Laffan Industrial City, home to some of the world’s most important liquefied natural gas operations. The attacks also targeted facilities in Saudi Arabia, Kuwait and the United Arab Emirates.
QatarEnergy said fires at Ras Laffan were brought under control and no injuries were reported, but the damage could have long-term consequences for global LNG supply. Qatar is one of the world’s top LNG exporters, producing about 77 million metric tons annually.
In Saudi Arabia, a drone struck near the SAMREF refinery in Yanbu, while Kuwait reported fires at two refineries after drone attacks. In the UAE, authorities shut down gas facilities at Habshan following missile interceptions and falling debris.
Europe Scrambles for Solutions
European leaders are expected to discuss emergency steps to deal with rising energy costs, especially after disruptions linked to the Strait of Hormuz, a vital route for roughly 20% of the world’s oil and LNG shipments.
Market analysts warn the latest strikes could fuel inflation and slow economic growth, particularly if damaged facilities take months or even years to fully restart.
Conflict Raises Global Supply Fears
The attacks came after Israeli strikes on Iran’s South Pars gas facilities, prompting Iranian retaliation across the Gulf. With some of the world’s largest energy hubs now under threat, traders and governments are bracing for more volatility in oil and natural gas markets.
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