Global oil prices surged and equity markets weakened on Friday after fresh strikes on energy infrastructure in Iran and in retaliation Islamic Republic escalating threats to key facilities across the Gulf raised concerns over supply disruptions.Natural gas prices increased by more than 5%, while Brent crude rose to $111.19 in early trading and extended its gains by another 4% to around $112 per barrel this morning, edging closer to the initial war peak of $120. US natural gas prices also climbed nearly 5% overnight, according to ET.The benchmark US crude, West Texas Intermediate (WTI), similarly gained over 3%, trading at $99.35 per barrel shortly after the Chicago Mercantile Exchange resumed operations. The rally follows strikes on Iran’s South Pars gas field, the world’s largest, and associated facilities at Asaluyeh. Tehran blamed the US and Israel for the attack and warned of retaliatory strikes on energy infrastructure across Saudi Arabia, Qatar and the United Arab Emirates.Iran’s Islamic Revolutionary Guard Corps subsequently published a list of potential targets, including Ras Laffan refinery, an area which has already been targeted and Mesaieed petrochemical complex in Qatar, Samref refinery and Jubail petrochemical complex in Saudi Arabia, and the Al Hosn gas field in the UAE, calling them “direct and legitimate targets.”The escalation has already disrupted energy flows. Ship traffic through the Strait of Hormuz has nearly halted, while production cuts by major oil producers and shutdowns at key LNG facilities in Qatar have tightened supply. Ras Laffan Industrial City, a major LNG hub located about 80 km north of Doha, was hit by missile strikes, causing “extensive damage,” according to QatarEnergy. Emergency teams were deployed to contain fires, and no casualties were reported.Qatar’s foreign ministry condemned the attack as a “direct threat” to national security, while its interior ministry confirmed a fire in the Ras Laffan area following an Iranian strike. Evacuations were also reported at LNG installations after Tehran issued warnings of further attacks.Energy experts have said the developments are shifting market focus back to physical supply risks. The South Pars facility alone recorded daily gas production of 730 million cubic metres in 2025, underlining its importance to global supply. The conflict’s impact could extend beyond the region, with countries such as Turkey, which imports over 10% of its gas from Iran, potentially seeking additional LNG cargoes, further tightening global markets.With tensions escalating and key infrastructure under threat, markets are likely to remain volatile amid concerns of prolonged supply disruptions. (with inputs from agencies)
