Oil and gas prices surge amid rising conflict. Seven hours ago. Daniel Thomas, Ben Hatton, wenn Sie mögen. Det er Peter Hoskins. Dearbail Jordan. Reuters. Oil and gas prices have skyrocketed amid Iran’s ongoing strikes throughout the Middle East, retaliating against continued US and Israeli assaults. Natural gas prices surged on Monday after QatarEnergy, a top global exporter, suspended production due to “military attacks” on its sites. Oil prices also climbed, with the Brent crude benchmark briefly reaching $82 (£61) per barrel, following attacks on at least three ships near the Strait of Hormuz over the weekend. Iran cautioned ships against traversing this vital southern waterway, which handles roughly 20% of global oil and gas shipments.
In the US, the Nasdaq and S&P 500 indexes started lower but recovered during Monday’s session to end slightly up. London’s FTSE 100 closed 1.2% lower, led by sharp drops for British Airways’ parent company amid Middle East airspace disruptions. Shares of banks like Barclays, Standard Chartered, and HSBC fell on fears that persistent energy price hikes could stoke inflation and prompt central banks to reduce interest rate cuts. Oil and defense stocks topped the FTSE 100 gainers. France’s CAC 40 ended 2.2% down, while Germany’s DAX dropped 2.6%.
State-owned QatarEnergy halted LNG production after its Ministry of Defence reported an Iranian drone strike on a Ras Laffan Industrial City facility. The ministry also noted a drone targeting a power plant’s water tank in Mesaieed, south of Doha. Europe’s reference gas price leaped 50% intraday before settling 39% higher. In neighboring Saudi Arabia, Aramco paused operations at its key Ras Tanura coastal refinery following a drone hit.
Shipping near the Strait of Hormuz entrance has nearly halted, with experts cautioning that extended conflict could drive energy prices further upward. The UK Maritime Trade Operations Centre reported two vessels struck and an “unknown projectile” detonating near a third. “The market isn’t panicking,” Saul Kavonic, MST Marquee’s head of energy research, told the BBC. He added, “There’s greater clarity that oil transport and production infrastructure hasn’t been a main target from any side so far.” “The market will monitor for indications that traffic through the Strait of Hormuz resumes, which would cause oil prices to fall again.”
