Middle East energy crisis sends oil prices soaring after attacks on Qatar and Iran facilities spark fears of global supply disruption

Global energy markets were thrown into turmoil on Thursday as escalating attacks on key oil and gas infrastructure in the Middle East triggered a sharp rise in prices and heightened fears of prolonged supply disruption.

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The Middle East energy crisis oil prices surge followed reported strikes on Iran’s South Pars gas facility and retaliatory attacks on Qatar’s Ras Laffan liquefied natural gas (LNG) plant, one of the world’s most critical energy hubs.

Brent crude oil surged by around 10% to more than $119 per barrel at one stage before easing, while wholesale gas prices in the United Kingdom and Europe jumped by approximately 25% in early trading before stabilising slightly.

UK gas prices were last seen near 175p per therm.

The developments have rattled financial markets, with Japan’s Nikkei index falling 3.4% and London’s FTSE 100 dropping 1.7%, reflecting growing investor concern over potential global economic fallout from the escalating conflict.

Energy analysts warn that the damage to Qatar’s Ras Laffan facility could have long-term consequences.

The terminal is responsible for roughly a fifth of global LNG supply, making it a critical pillar of international energy stability.

Matthieu Favas, commodities editor at The Economist, described the price spike as significant, noting that extended outages could keep global markets under pressure for months.

He said the disruption is particularly serious due to the lack of immediate alternatives for replacement supply.

Further escalating tensions, Iran reportedly warned of additional retaliation against what it described as the “American-Zionist enemy,” raising fears of further attacks on regional energy infrastructure.

Nick Butler, former BP strategy chief, said the strike would likely reduce LNG supply globally, warning that the affected gas “cannot be substituted very quickly, if at all,” intensifying upward pressure on prices.

In response, the White House announced a temporary 60-day suspension of the Jones Act to ease domestic fuel movement within the United States, although analysts suggest the measure may have limited impact on consumer fuel prices.

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The latest escalation underscores the fragility of global energy supply chains and highlights how geopolitical instability in the Middle East continues to pose a powerful threat to economic stability worldwide.