Global energy markets saw prices rise sharply as military confrontation escalated between Israel and the United States on one side and Iran on the other, disrupting oil and gas facilities and unsettling shipping traffic in one of the world’s most critical maritime chokepoints, the Strait of Hormuz.
Oil and gas policy expert Laury Haytayan told Alhurra that Iran, from the first day of the escalation, made a decision to target Arab economies. She said strikes on Gulf oil infrastructure “reflect Iran’s strategy to pressure Gulf economies and exploit vulnerabilities in the energy sector.”
Saudi Arabia announced the closure of its largest domestic oil refinery after it was hit by a drone attack, while QatarEnergy said it had suspended liquefied natural gas production. About 150 vessels were reported stranded in the vicinity of the Strait of Hormuz.
According to Reuters, Brent crude futures rose 13% to $82.37 per barrel, while U.S. West Texas Intermediate crude climbed to around $72 per barrel.
Natural gas markets also recorded significant gains. European gas prices surged more than 50%, according to the TTF Hub benchmark, while liquefied natural gas prices in Asia jumped about 39%, based on the JKM index.
Haytayan said the spike reflected a delayed market reaction. “At the beginning of the week, markets were not fully aware of the scale of the risks facing the oil and gas sector. With each report of attacks on Gulf infrastructure, prices rose markedly,” she said.
The Strait of Hormuz represents a major artery for global energy trade, with oil shipments equivalent to roughly one-fifth of global demand passing through it daily, in addition to nearly 20% of global liquefied natural gas trade.
Haytayan said Iran is using strikes on Gulf oil facilities as a form of economic pressure to push parties to end the war “before the Iranian regime collapses completely.”
She warned that any further expansion of the conflict could involve the Houthis and potentially the closure of the Strait of Hormuz and the Bab el-Mandeb Strait, developments that “would have major repercussions for global trade as a whole.”
However, she said this strategy does not guarantee results.
“Even in the event of a temporary supply disruption, major countries hold strategic reserves sufficient to manage conditions for up to 90 days, giving them room to address any short-term interruption in oil or gas supplies,” Haytayan said.
Despite the sharp increases, analysts say the market remains relatively well supplied, with higher output from countries such as the United States and from the OPEC+ alliance, which agreed to raise production by about 206,000 barrels per day starting in April.
The article is a translation of the original.
Randa Jebai
Randa Jebai is an award-winning journalist with more than 20 years of experience. She joined Alhurra TV’s investigative team in 2020, earning honors from the AIBs, New York Festivals, and the Telly Awards. She previously worked with major Lebanese outlets and holds master’s degrees in law and journalism.
