Tensions in the Middle East boiled over into energy markets Thursday, as attacks on vital oil and gas facilities propelled crude prices upward by over 4 percent. Brent crude for April delivery traded at $111.78 per barrel on the ICE, reflecting a 4.10 percent gain from Wednesday’s settlement.
Meanwhile, WTI crude saw a 3.37 percent increase to $99.57 per barrel on NYMEX. The catalyst: Israel’s precision strike on the massive South Pars gas field in Iran, prompting a swift Iranian counterattack on Qatar’s Ras Laffan Industrial City, a cornerstone of global LNG exports.
Qatar’s diplomatic channels rang alarm bells, with the Foreign Ministry labeling the strikes a direct assault on global energy stability. Qatar Energy officials verified the missile barrage, which ignited fires due to extensive structural damage. Rescue operations mobilized rapidly, ensuring worker safety without reported injuries.
India faces acute fallout, relying on imports for 90 percent of its oil consumption. This rally threatens to inflate fuel prices, disrupt industrial operations, and challenge the government’s fiscal planning in an election-sensitive year.
U.S. political heavyweight Donald Trump weighed in on Truth Social, criticizing escalation after Israel’s hit on South Pars. He described the damage as limited to a small section of the plant, urging restraint amid the fury over recent regional events.
With threats of broader Iranian retaliation looming over Gulf energy hubs, markets brace for supply disruptions. Traders eye potential OPEC responses and U.S. strategic reserves as safeguards, but the shadow of conflict continues to drive fear-based pricing in commodities.