Alexandar Sullivan:
Global energy markets were jolted after fresh strikes on key infrastructure in the Middle East sent gas and oil prices sharply higher, raising concerns about prolonged supply disruptions.
Wholesale gas prices in Europe and the UK surged by about 25% in early trading following attacks on Qatar’s Ras Laffan facility and Iran’s South Pars gas field—two critical hubs in global energy production. Although prices later eased slightly, UK gas still climbed to 165p per therm, with earlier highs nearing 183p, while European prices hit a three-year peak.
Oil markets also reacted swiftly. Brent crude jumped 10% to $119 per barrel on Thursday morning, before settling near $112 later in the day. The surge reflects growing fears that the conflict—linked to the ongoing U.S.-Israel war with Iran—could significantly disrupt supply chains.
Experts warn the impact could be long-lasting. “This is huge,” said Matthieu Favas of The Economist, noting that Qatar’s facilities supply roughly one-fifth of the world’s liquefied natural gas. Damage from missile strikes could keep production offline for months.
Financial markets also felt the strain, with Japan’s Nikkei index falling 3.4% and London’s FTSE 100 dropping 2.5%. Analysts say investor anxiety is growing as geopolitical tensions threaten economic stability.
With global energy flows under pressure, officials and markets alike are bracing for continued volatility in the weeks ahead.
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