Iran strikes fuel global energy shock; oil tops $116
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Bangkok: Global oil and natural gas prices surged on Thursday after Iran attacked key energy infrastructure in the Gulf, intensifying fears of a prolonged supply crisis. A major strike hit Qatar’s Ras Laffan LNG export terminal, responsible for nearly 20% of global liquefied natural gas supply, forcing a shutdown. Additional attacks targeted two oil refineries in Kuwait.
The situation worsened with the closure of the Strait of Hormuz to most tanker traffic, choking off vital oil and gas shipments. Brent crude jumped to $116.38 per barrel from under $73 before the conflict, while European natural gas prices rose 24%. US crude climbed to $96.45, and natural gas futures gained over 5%.
The energy shock rattled global financial markets. European indices including Germany’s DAX, France’s CAC 40, and the UK’s FTSE 100 fell sharply. Asian markets also declined, with Japan’s Nikkei dropping 3.4% amid concerns over rising import costs.
The crisis has heightened fears of persistent global inflation, with higher energy prices expected to strain economies already facing rising costs. Analysts warn prolonged disruptions could deepen economic instability worldwide.
