Global oil prices jumped sharply on Thursday after Iran launched attacks on energy facilities across the Middle East, escalating tensions in its conflict with the United States and Israel.
Benchmark Brent crude rose as much as $5 per barrel during early trading, later standing at $112.04, up $4.66 or 4.3%. Meanwhile, West Texas Intermediate crude increased by 96 cents to $97.28 a barrel after earlier gaining more than $3.
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The surge follows Iranian strikes on key energy infrastructure in the region, including reported damage to facilities in Qatar and attempted attacks in Saudi Arabia. QatarEnergy said missile strikes caused extensive damage at Ras Laffan, a major liquefied natural gas hub.
Saudi authorities reported intercepting ballistic missiles and a drone targeting gas facilities near Riyadh, highlighting the widening نطاق of the conflict. Iran had earlier issued evacuation warnings before targeting sites in Saudi Arabia, the United Arab Emirates, and Qatar in retaliation for strikes on its own energy infrastructure.
One of the focal points of the escalation is the South Pars gas field, the world’s largest natural gas reserve, which Iran shares with Qatar. The attack on the field has raised fears of prolonged disruptions to global energy supplies.
Analysts warn that continued strikes on oil and gas infrastructure could sustain upward pressure on prices. Market sentiment was further influenced by the Federal Reserve decision to hold interest rates steady while warning of rising inflation linked to the conflict.
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US President Donald Trump said Israel was responsible for the South Pars strike but noted that Washington and Doha were not involved. He warned that the US would respond if Iran targeted Qatar.
With tensions rising and uncertainty over the Strait of Hormuz, analysts say oil markets are likely to remain volatile in the near term.