Oil and Gas Prices Surge Sharply Due to Attacks in the Gulf
Oil and natural gas prices surged sharply after attacks in the Persian Gulf caused significant damage to major energy facilities. This spike has raised concerns about global supply and potential long-term inflation.
European gas futures rose by up to 35 per cent, more than double the pre-war levels. Brent crude oil prices hit $119 per barrel, nearing the highest level since 2022, while European diesel futures briefly exceeded $190 per barrel.
Quoting Reuters on Thursday (19/3/2026), QatarEnergy CEO Saad al-Kaabi stated that Iranian missile attacks on Qatar’s Ras Laffan complex damaged the world’s largest LNG plant.
The facility, which produces around 17 per cent of Qatar’s LNG exports, is estimated to require 3–5 years for repairs.
The attacks in Qatar have heightened long-term inflation concerns due to the war between the US and Israel against Iran.
Although oil and gas flows through the Strait of Hormuz could recover after the conflict ends, serious damage to production facilities will have a lasting impact on the global economy.
“The latest wave of attacks on energy infrastructure in the Gulf reinforces the gloomy outlook for supplies from the region,” said Rabobank energy expert Florence Schmit.
US President Donald Trump responded to the Qatar attacks by pushing for de-escalation. He stated that Israel would refrain from further strikes on Iran’s South Pars gas field, which had provoked Iran’s retaliation against Qatar.
However, Trump also warned that if Iran targets Qatar’s LNG facilities again, South Pars could be completely destroyed.
US Treasury Secretary Scott Bessent added that the United States would take steps to increase oil supply, including potentially lifting sanctions on Iranian oil currently in transit and unilaterally releasing emergency reserves.
Prolonged supply disruptions could deplete global stocks and keep prices high. US natural gas futures, from a major producer and LNG exporter, rose by up to 6.7 per cent on Thursday (19/3/2026).
Shell’s Pearl refinery in Abu Dhabi sustained damage, but the fire has been extinguished and the facility is now secure.
Two oil refineries in Kuwait, Mina Al-Ahmadi and Mina Abdullah, also caught fire due to drone attacks, but the blazes have been brought under control.
Attacks on major ports or refineries like Yanbu could remove 5–6 million barrels per day from the global market and push oil prices to $150 per barrel or higher, according to Rystad Energy.
Since the war began, oil prices have already surged more than 50 per cent. More intensive attacks on energy infrastructure, either in Iran or surrounding areas, could drive prices even higher.