Oil, Gas Prices Soar After Iran-Qatar Strikes Shake Energy Markets

A sharp escalation in the West Asia conflict has jolted global energy markets, with oil and gas prices surging amid mounting fears of a widespread supply disruption.

Crude oil climbed past $114 per barrel, while European gas prices spiked nearly 30 per cent after a series of coordinated attacks targeted critical energy infrastructure across the Gulf region.

The surge follows an Israel-led strike on Iran’s South Pars gas field and retaliatory attacks by Iran on Qatar’s LNG facilities, significantly intensifying geopolitical tensions.

What triggered the sudden spike in oil and gas prices?

QatarEnergy confirmed that Ras Laffan Industrial City came under missile attack late Wednesday, with extensive damage reported at the Pearl GTL facility and multiple LNG sites.

“In addition to the previous attack on Ras Laffan Industrial City that resulted in extensive damage to the Pearl GTL (Gas-to-Liquids) facility, several of its Liquefied Natural Gas (LNG) facilities were the subject of missile attacks, causing sizeable fires and extensive further damage. The fires at the facility have since been contained,” QatarEnergy was quoted as saying by news agencies.

The disruption has had an immediate market impact. Brent crude futures for May delivery rose 6.3 percent to $114.13 per barrel.

European gas markets reacted even more sharply, with benchmark prices at the Dutch TTF hub surging nearly 30 percent to 70.8 euros per megawatt-hour.

In the UK, gas prices jumped over 20 percent, reaching 173p per therm in early trading.

How critical is Qatar to global energy supply?

The crisis is particularly alarming because Qatar plays a pivotal role in global LNG supply, accounting for nearly a fifth of global shipments and ranking as the world’s second-largest exporter.

Production had already been suspended earlier this month following prior drone attacks on Ras Laffan and Mesaieed Industrial City, further tightening supply.

With tanker movement through the Strait of Hormuz, a route handling about 20 percent of global oil supply, now largely blocked, concerns over a deeper supply shock are intensifying.

Are markets entering an ‘all bets are off’ scenario?

Energy experts warn the situation could spiral into unprecedented territory if attacks expand beyond the Gulf.

“Can you imagine the response in the world if [Iran] targeted something outside of the Persian Gulf, a refinery in Rotterdam or a facility somewhere in the United States? That's when all bets are off and prices could go absolutely apocalyptic,” said Tom Kloza, senior energy advisor at Gulf Oil.

The warning underscores fears that the crisis could evolve from a regional disruption into a full-scale global energy emergency.

Is the crisis shifting from supply chain disruption to supply collapse?

Analysts say the nature of the crisis is already changing.

“We're moving from a supply chain problem to potentially a supply problem. There's a big difference. You fix supply chain problems quickly,” said Dan Pickering, founder and CIO of Pickering Energy Partners.

“If you start changing the ability to produce, whether it's LNG or oil, and all of a sudden you can't move the same amount of volumes because the volumes aren't there ... this is an escalation,” he added further.

Such a shift signals a more dangerous phase, where production itself is threatened, not just logistics.

How widespread are the attacks across the Gulf region?

The escalation is no longer limited to Qatar.

Saudi Arabia confirmed that a drone crashed into the Samref oil refinery, with damage assessment currently underway.

The official spokesperson for Ministry of Defence said, “A drone has fallen in the Samarra refinery and damage assessment is underway.”

Authorities also reported intercepting a ballistic missile aimed at the port of Yanbu.

Explosions were witnessed near a Saudi Aramco facility in Riyadh, with multiple missiles intercepted.

In Kuwait, a drone strike caused a “limited fire” at the Mina al-Ahmadi refinery.

Kuwait Petroleum Corporation confirmed there were no casualties and that the fire was handled “according to the highest safety standards.”

Qatar’s Ministry of Interior also stated that fires at Ras Laffan were contained with no reported casualties.

Iran’s Islamic Revolutionary Guard Corps (IRGC) has claimed responsibility for attacks on what it described as US-linked oil facilities in the region.

The strikes are part of the “63rd wave” of its retaliatory Operation True Promise 4, launched after US-Israel strikes on Iran.

How are global leaders responding to the crisis?

US President Donald Trump said Washington and Qatar were unaware of the initial strike on Iran’s South Pars field and suggested further escalation would provoke a strong response.

He warned that the United States would not hesitate to act if Qatar’s energy infrastructure is targeted again.

Meanwhile, foreign ministers from key Arab and Islamic nations convened in Riyadh, strongly condemning Iran’s attacks.

They called for Tehran to comply with UN Security Council Resolution 2817 (2026), which demands an immediate halt to attacks and cessation of provocative actions.

The ministers stressed that such strikes on civilian infrastructure, including oil facilities and residential areas, “could not be justified under any pretext or in any manner whatsoever.”

They also urged Iran to refrain from threatening maritime security, particularly in critical routes like the Strait of Hormuz and Bab al-Mandab.

Is diplomacy still possible amid rising tensions?

Despite the escalation, regional leaders emphasised diplomacy as the only viable path forward.

They reiterated the importance of respecting sovereignty, non-interference, and international law as essential steps toward restoring stability.

However, with attacks spreading across multiple countries and energy infrastructure increasingly under threat, the window for de-escalation appears to be narrowing rapidly.

(With inputs from ANI)