Oil Prices Surge Past $110 as Iran War Escalates Global Energy Crisis

DUBAI, United Arab Emirates — Oil prices have surged past $110 per barrel after Israeli strikes targeted Iran’s South Pars gas field, the world’s largest natural gas reserve, prompting Tehran to threaten retaliatory attacks on energy facilities across the Gulf region and deepening concerns about a global energy crisis. Coverage of this rapidly evolving situation has been provided by BBC News, AP News, CNBC, Al Jazeera, and The Guardian. Each of the bullet points immediately below have been confirmed by at least four of the five respected sources we curated on this story.

• Brent crude oil, the international benchmark, jumped more than 5% to reach $112 per barrel in early Thursday trading in Asia, while U.S. West Texas Intermediate crude climbed to $98.65 per barrel
• Israeli strikes reportedly targeted the South Pars gas field, which Iran shares with Qatar and represents the world’s largest natural gas reserve
• Iran’s Revolutionary Guards issued explicit threats to attack specific energy facilities in Qatar, Saudi Arabia, and the United Arab Emirates, including Qatar’s Ras Laffan refinery and LNG complex, Saudi Arabia’s Samref refinery and Jubail petrochemical complex, and the UAE’s Al Hosn gas field
• The Strait of Hormuz, through which approximately 20% of the world’s oil passes, remains effectively blockaded by Iran’s threats against shipping vessels, disrupting Middle East oil and natural gas exports
• Qatar confirmed Iranian missile attacks caused “extensive damage” and fires at the Ras Laffan liquefied natural gas facility, leading Qatar to expel Iranian embassy military and security attaches within 24 hours
• The Federal Reserve held U.S. interest rates steady at 3.5% to 3.75%, with Chair Jerome Powell acknowledging that inflation forecasts have been revised upward to 2.7% due to the “oil shock” from the ongoing conflict
• President Donald Trump announced a 60-day suspension of the Jones Act shipping law to allow foreign-flagged vessels to transport oil, natural gas, and other goods between U.S. ports in an effort to address rising fuel costs
• Asian markets tracked Wall Street losses, with Japan’s Nikkei 225 falling 2.58%, South Korea’s Kospi dropping 2.54%, and Hong Kong’s Hang Seng index declining 1.62% amid energy uncertainty

Additional Details Reported

Iranian President Masoud Pezeshkian warned of “uncontrollable consequences” that “could engulf the entire world” following the strikes on South Pars, according to AP News. The attacks mark a significant escalation in the three-week-old war, as U.S. and Israeli forces had previously largely spared Iran’s oil and gas infrastructure to contain global price surges.

The U.S. Treasury Department eased sanctions on Venezuela’s state-owned oil company PDVSA on Wednesday, authorizing certain business dealings in an effort to boost alternative oil supplies, AP News reported. This move comes as daily oil exports from the Middle East region have fallen by at least 60% from prewar levels due to the impact of drone and missile strikes and the effective closure of the Strait of Hormuz.

Qatar, which produces approximately 20% of the world’s liquefied natural gas, had already halted production at Ras Laffan earlier in March following previous Iranian attacks. The facility represents the world’s largest LNG production complex. While QatarEnergy reported no injuries from the latest strikes, the company confirmed “sizable fires and extensive further damage” to multiple LNG facilities.

Federal Reserve officials now forecast economic growth of 2.4% for the year, while predicting the unemployment rate will hold steady at 4.4%. However, policymakers acknowledged the challenging balance between rising inflation and mixed signals from the job market. Powell stated that the next six weeks would be critical to understanding how the U.S. economy evolves amid the conflict.

European natural gas prices also experienced significant volatility, with the benchmark UK gas price jumping 6% to 143.53p per therm before falling back to around the 140p mark, BBC News reported. French President Emmanuel Macron called for an immediate moratorium on strikes targeting civilian infrastructure, particularly energy and water supply facilities.

Saudi Arabia, the United Arab Emirates, and other Gulf Arab states have denounced the Iranian attacks while attempting to avoid direct military involvement in the conflict. Saudi Arabia’s top diplomat stated that assaults on the kingdom mean “what little trust there was before has completely been shattered.”

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