Global energy markets were shaken on Thursday as crude oil prices jumped sharply and stock markets declined amid escalating tensions in the Middle East.
Benchmark Brent crude rose more than 5%, climbing past $113 per barrel after Iran launched strikes on key energy facilities in the Gulf and warned of further retaliation. The surge followed an earlier Israeli strike on Iran’s South Pars gas field, a major energy site shared with Qatar.
Missile attacks reportedly hit Ras Laffan in Qatar, one of the world’s largest liquefied natural gas hubs, raising fears of significant disruptions to global energy supplies. European gas prices also spiked by over 30% in response to the developments.
US President Donald Trump said Washington had no prior knowledge of the Israeli strike but urged restraint, warning Iran of severe consequences if attacks continued.
The rising tensions have had a broad impact on financial markets, with major Asian stock indices falling sharply. Markets in Tokyo and Seoul posted notable losses, while other regional exchanges also ended in negative territory.
Analysts say the crisis has been exacerbated by disruptions in the Strait of Hormuz, a vital route for global oil and gas shipments, through which roughly one-fifth of the world’s energy supplies pass.
Iranian officials, including President Masoud Pezeshkian, warned that continued attacks on energy infrastructure could have far-reaching and uncontrollable consequences for the global economy.
The surge in oil prices has intensified concerns about rising inflation worldwide, with central banks closely monitoring the situation. Jerome Powell noted that higher energy costs could push prices upward in the near term, though the overall impact remains uncertain.
With geopolitical risks mounting, investors are bracing for further volatility as the conflict continues to threaten global energy security and economic stability.