Global energy markets were jolted on Monday as natural gas prices surged nearly 50% amid escalating tensions in the Middle East following joint US-Israeli strikes on Iran. The spike came after QatarEnergy, one of the world’s largest liquefied natural gas (LNG) exporters, suspended production due to reported military attacks on its facilities.
According to BBC, the rally in oil and gas prices coincides with continued Iranian retaliatory strikes across the region. Brent crude, the global oil benchmark, climbed 10% to trade above $82 per barrel before easing to around $79 later in the day. Meanwhile, US-traded crude rose approximately 7.6% to $72.20 per barrel.
Heightened fears intensified after at least three vessels were attacked near the Strait of Hormuz over the weekend. The waterway, located south of Iran, handles roughly 20% of global oil and gas shipments. Iranian authorities reportedly warned vessels against transiting the corridor, prompting severe disruption to maritime traffic.
In Qatar, the country’s Ministry of Defence said a drone launched from Iran targeted a facility in Ras Laffan Industrial City, while another drone reportedly struck a water tank linked to a power plant in Mesaieed, south of Doha. In neighboring Saudi Arabia, Saudi Aramco temporarily shut its major refinery in Ras Tanura after a drone incident.
Financial markets reacted sharply. In London, the FTSE 100 fell 1%, with airline operators and major banks including Barclays, Standard Chartered, and HSBC recording losses amid inflation concerns. European indices posted steeper declines, with France’s CAC 40 dropping 1.8% and Germany’s DAX falling 2.1%.
Gold prices, seen as a safe-haven asset, rose 2% to $5,388 per ounce. The UK Maritime Trade Operations confirmed vessel strikes and an explosion near a third ship.
Despite the volatility, analysts say markets remain cautious rather than panicked, closely monitoring whether shipping flows through Hormuz resume, which could stabilize prices.
