How Iran's Attack on Qatar's Gas Facility is Impacting Global Oil Prices

Surge in Oil and Gas Prices Following Attacks

Bangkok: On Thursday, there was a significant increase in global oil and natural gas prices following an Iranian assault on a crucial natural gas facility in Qatar, which is responsible for supplying approximately 20% of the world's gas, along with two oil refineries in Kuwait.

These attacks have heightened concerns that the energy crisis, exacerbated by the closure of the Strait of Hormuz to tanker traffic, could be more prolonged and severe than previously anticipated, potentially causing lasting harm to oil and gas production.

Brent crude, the global benchmark for oil, surged to nearly USD 114 per barrel, a notable rise from just under USD 73 per barrel prior to the onset of the conflict.

Additionally, the European TTF benchmark for natural gas saw a 24% increase in trading on Thursday.

The Iranian strikes targeted the Ras Laffan terminal in Qatar, a key site for liquefied natural gas (LNG) exports. Qatar typically accounts for about 20% of global LNG consumption, which is transported by ship. The facility was forced to shut down following a drone attack, and the closure of the Strait of Hormuz has left the gas with no viable export routes.