Global oil and gas prices surge as Middle East tensions escalate

2026-03-02 - 18:38

Global oil and gas prices jumped sharply on Monday as Iran intensified missile and drone attacks across the Middle East in response to continuing strikes by the United States and Israel, fuelling fears of major disruptions to global energy supplies. According to the BBC, natural gas prices surged by almost 50 per cent after QatarEnergy suspended liquefied natural gas production following reported attacks on its facilities. Brent crude, the global oil benchmark, climbed by about 10 per cent to above 82 dollars per barrel after at least three vessels were attacked near the Strait of Hormuz over the weekend. Prices later eased to around 79 dollars per barrel, while US-traded crude rose 7.6 per cent to 72.20 dollars. Iran has warned commercial vessels against transiting the strait, a strategic shipping route through which roughly 20 per cent of the world’s oil and gas supply passes. Analysts said shipping traffic at the entrance to the waterway has slowed sharply, raising concerns that prolonged hostilities could push oil prices above 100 dollars per barrel. Qatar’s Ministry of Defence said a drone launched from Iran targeted a facility in Ras Laffan Industrial City, prompting QatarEnergy to halt LNG operations. Another drone reportedly hit a water tank at a power plant in Mesaieed, south of Doha. In neighbouring Saudi Arabia, Saudi Aramco temporarily shut its major refinery at Ras Tanura after a drone strike. The UK Maritime Trade Operations said two vessels were struck in separate incidents, while an unknown projectile exploded close to a third ship. Iran’s Islamic Revolutionary Guard Corps claimed three UK and US tankers were hit, although United Kingdom and the United States have not confirmed the claims. Shipping data show more than 150 tankers have anchored in Gulf waters beyond the Strait of Hormuz as operators reassess security risks. Danish shipping group Maersk has also paused sailings through the Bab el-Mandeb Strait and the Suez Canal, rerouting vessels around the Cape of Good Hope. Meanwhile, the Dangote Petroleum Refinery increased its Premium Motor Spirit gantry price by 101 naira, raising the ex-depot rate from N774 to N875 per litre. A senior refinery official confirmed the adjustment to Vanguard on Monday, explaining that the move was necessary due to recent volatility in global crude oil markets. Vanguard News