Iran–US–Israel Tensions Push Gas Up 50%, Oil Rises 10%

Natural gas prices jumped nearly 50% on Monday after QatarEnergy, one of the world’s largest LNG exporters, halted production following what it described as “military attacks” on its facilities. The disruption comes amid escalating hostilities sparked by US-Israeli strikes on Iran.

Reporting by the BBC indicates that the rally in oil and gas prices coincides with continued Iranian strikes across the Middle East in response to ongoing attacks by the US and Israel.

Brent crude, the global benchmark, climbed 10% to trade above $82 per barrel on Monday. The increase followed weekend attacks on at least three vessels near the Strait of Hormuz, a critical shipping route.

Iran warned ships against passing through the southern waterway, which handles about 20% of global oil and gas shipments.

In the UK, the FTSE 100 slipped 1%, with the parent company of British Airways among the worst performers as disruptions to Middle East airspace weighed on airline stocks.

Banking stocks, including Barclays, Standard Chartered and HSBC, also declined amid concerns that sustained higher energy prices could stoke inflation and reduce the chances of further interest rate cuts by central banks.

Elsewhere, European markets posted steeper losses. France’s CAC 40 dropped 1.8%, while Germany’s DAX fell 2.1% in early afternoon trading.

Gold prices rose 2% to $5,388 per ounce, reflecting investor demand for safe-haven assets during heightened uncertainty.

QatarEnergy said it suspended liquefied natural gas production after Qatar’s Ministry of Defence reported that a drone launched from Iran targeted a facility in Ras Laffan Industrial City. Another drone reportedly struck a water tank at a power plant in Mesaieed, south of Doha.

In neighbouring Saudi Arabia, Saudi Aramco temporarily shut its major refinery at Ras Tanura following a drone strike.

Shipping activity at the entrance to the Strait of Hormuz has slowed significantly, with analysts warning that a prolonged conflict could send energy prices even higher.

The UK Maritime Trade Operations confirmed that two vessels were struck, while an “unknown projectile” reportedly “exploded in very close proximity” to a third.

After the initial surge, Brent crude eased back to $79 per barrel, while US-traded oil remained up about 7.6% at $72.20.

“The market isn’t panicking,” Saul Kavonic, head of energy research at MST Marquee, told the BBC. “There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side,” he said.

“The market will be watching for signs that traffic through the Strait of Hormuz returns, which would see oil prices subside again.”

Africans Angle News