Market News

Oil prices soared on Thursday morning, following an escalation in strikes on key energy infrastructure in the Middle East, adding to supply disruption concerns.

Brent crude (BZ=F) futures surged 5.5% to $108.53 a barrel, while West Texas Intermediate (CL=F) jumped 1.1% to $96.54 at the time of writing.

Qatar’s state-owner oil company QatarEnergy, which is the world’s second-largest liquefied natural gas (LNG) exporter, said on Wednesday that its key Ras Laffan site had been the subject of missile attacks and that the strikes had caused “substantial damage”.

In another statement, QatarEnergy said that in the early hours of Thursday morning, several of its LNG facilities had been the subject of missile attacks, “causing sizeable fires and extensive further damage”.

Iran’s missile strikes on Qatar’s facilities came after Tehran accused Israel of striking its South Pars gas field on Wednesday.

US president Donald Trump said in a post on Truth Social early on Thursday: “Israel, out of anger for what has taken place in the Middle East, has violently lashed out at a major facility known as South Pars Gas Field in Iran.”

“NO MORE ATTACKS WILL BE MADE BY ISRAEL pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar – In which instance the United States of America, with or without the help or consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before,” he said.

The escalation in strikes has pushed oil (BZ=F, CL=F) and gas (NG=F) prices higher, adding to concerns about global supply, with continued disruption to flows through the key Strait of Hormuz shipping route.

Susannah Streeter, chief investment strategist at Wealth Club, said: “Fears of a sustained energy shock have resurfaced after the escalation in the Iran war sent oil and gas prices soaring.”

“The prospect of a longer, more drawn-out conflict is in sharp focus, as both sides ratchet up attacks on energy infrastructure.”