• Benchmark Brent crude touches $119/bbl

Sopuruchi Onwuka, with agency reports

Global energy markets jolted on Thursday after Iran struck Qatar’s Ras Laffan LNG facility, threatening 20 percent of global LNG supply, triggering sharp rises in oil and gas prices and deepening fears of a prolonged supply crisis.

Ad >>>

Iran’s attack on Qatar’s energy infrastructure sparked immediate regional outrage, prompting 12 Arab nations to jointly condemn the attack, with President Donald Trump of the United States threatening to obliterate Tehran’s energy infrastructure if the attacks continue.

Iran which has effectively closed the Strait of Hormuz to international merchant ships said the attack on Qatar LNG was retaliation for an Israeli strike on its South Pars gas field, warning it would target energy infrastructure across the region.

The worsening tension in the Middle East heavily impacted energy market sentiments, with Brent crude jumping by about 10 percent and European gas prices surging by 35 percent before easing.

With Qatar responsible for as much as 20 percent of global LNG supply, and the strike has intensified concerns about disruptions already linked to reduced traffic through the Strait of Hormuz.

Sharing in the threat of Iran to regional economic outlook, the 12 Gulf states condemned Iran’s actions. Saudi Arabia signaled possible military retaliation after related strikes on its territory, and Emmanuel Macron warned that attacks on energy production risk long-term global economic damage.

QatarEnergy confirmed that missile strikes caused fires and extensive damage at Ras Laffan, which had already been partially shut earlier in the conflict as a precaution. The facility is central to global LNG supply, and analysts say targeting production sites—not just transport routes—marks a dangerous turning point.

The disruption is already rippling across markets. Around 20 percent of global LNG flows have been affected, tightening supply and pushing Europe into fiercer competition with Asia for spot cargoes. This comes at a vulnerable moment, as European gas inventories sit at their lowest levels in years following winter.

Iran’s military doubled down on its position, warning that any further attacks on its infrastructure would trigger broader and more severe retaliation. At the same time, divisions appear to be emerging among Western allies over how to manage the conflict as it drags on without a clear endgame.

In the Gulf, tensions continue to spread. Drone and missile strikes have been reported on energy facilities in Saudi Arabia and Kuwait, underscoring the widening scope of the conflict and the vulnerability of critical infrastructure across the region.

Despite the escalating crisis, parts of Iran appear outwardly calm. In Tehran, daily life continues with visible security presence as the country prepares for Nowruz celebrations, even as the wider conflict edges closer to a prolonged war of attrition.

With energy infrastructure now directly in the crosshairs, analysts warn that the economic impact could last for years, reshaping global energy flows and increasing the risk of sustained volatility in oil and gas markets.