Iran-US-Israel war: Gas price jumps 50%; crude, 10%

2026-03-02 - 14:46

Following the Middle East crisis sparked by US-Israeli strikes in Iran, natural gas prices spiked by nearly 50% on Monday after QatarEnergy, one of the world’s biggest exporters, halted production following “military attacks” on its facilities. The oil and gas prices surge, BBC reports, is just as Iran continues to launch strikes across the Middle East in response to ongoing attacks by the US and Israel. Brent crude, the global benchmark for oil prices, jumped by 10% to touch more than $82 a barrel on Monday. This came just after at least three ships were attacked near the Strait of Hormuz at the weekend. Iran warned vessels not to pass through the crucial waterway in the south of the country, through which about 20% of the world’s oil and gas is shipped. In London, the FTSE 100 share index fell 1%, with the owner of British Airways among the biggest fallers following the disruption to Middle East airspace. Banks such as Barclays, Standard Chartered and HSBC also saw their share prices slide due to concerns that a sustained rise in energy prices risks fueling inflation which, in turn, could lead to fewer interest rate cuts by central banks. Leading stock markets in Europe sustained bigger drops. In France, the CAC-40 fell by 1.8% while Germany’s Dax extended earlier declines to fall by 2.1% in early afternoon trading. Meanwhile, the price of gold, which is viewed as a safe-haven asset during periods of uncertainty, added 2% to $5,388 an ounce. QatarEnergy, which is owned by the state, said that it had suspended producing liquefied natural gas (LNG) after the country’s Ministry of Defence (MoD) said a drone launched from Iran targeted a facility in Ras Laffan Industrial City. Qatar’s MoD also said a drone went after a water tank belonging to a power plant in Mesaieed, south of the capital Doha. Meanwhile in neighbouring Saudi Arabia, Aramco temporarily shut its major oil refinery at Ras Tanura on the coast after being hit by a drone. International shipping has almost come to a standstill at the entrance to the Strait of Hormuz, with analysts warning that a prolonged conflict could push energy prices even higher. The UK Maritime Trade Operations Centre (UKMTO) said that two vessels had been struck, and an “unknown projectile” was reported to have “exploded in very close proximity” to a third. After its initial surge, Brent crude fell back to $79 a barrel while US-traded oil was up by around 7.6% at $72.20. “The market isn’t panicking”, Saul Kavonic, head of energy research at MST Marquee told the BBC. “There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side,” he added. “The market will be watching for signs that traffic through the Strait of Hormuz returns, which would see oil prices subside again.” BBC Vanguard News