Gas prices jumped to four-year highs and oil prices rose again after an escalation of attacks by Israel and Iran on gasfields heightened fears of prolonged disruption to international energy supplies.<\/p>\n
On Thursday, QatarEnergy told Reuters Iran had damaged facilities that produced 17% of the state-owned company\u2019s liquefied natural gas (LNG) export capacity and that it would take three to five years to repair them.<\/p>\n
Brent crude, the global oil benchmark, rose by 8% to $116 a barrel. Crude prices have soared by 60% since the US-Israeli war on Iran started on 28 February.<\/p>\n
European gas prices jumped, with the Dutch wholesale gas price up 24% at \u20ac68 a megawatt hour, the highest since the end of December 2022. They have more than doubled since before the war.<\/p>\n
UK gas prices have also more than doubled since late February, and are likely to drive up household bills. The month-ahead UK wholesale gas price rose by 23% on Thursday morning to 172p a therm, its highest level since August 2022. They still remain well below the peak of 800p a therm that was momentarily hit in March 2022<\/a>.<\/p>\n Traders are responding to the escalation in the Middle East, where Tehran stepped up its attacks on energy facilities, causing significant damage to Ras Laffan \u2013 the world\u2019s largest LNG facility in Qatar \u2013 in response to Israel\u2019s attack on Iran\u2019s South Pars gasfield.<\/p>\n Oil price chart<\/a><\/p>\n The escalation of the war and its effect on oil and gas prices triggered a sharp sell-off across stock markets. Japan\u2019s Nikkei tumbled 3.4%, South Korea\u2019s Kospi fell 2.7% and Hong Kong\u2019s Hang Seng was down 2%. European markets followed Asia. The UK\u2019s FTSE 100 was down nearly 3% by early afternoon, while Germany\u2019s Dax and France\u2019s CAC were 2.3% and 2.2% lower respectively. Wall Street also opened lower.<\/p>\n Donald Trump has threatened to \u201cmassively blow up\u201d South Pars<\/a> completely if Iran attacks Qatar again. Israel\u2019s decision to target the Iranian gasfield<\/a> was a significant escalation of the war.<\/p>\n Ras Laffan in Qatar suffered \u201cextensive damage\u201d after strikes by Iran, QatarEnergy said.<\/p>\n Gas price chart<\/a><\/p>\n The energy consultancy Wood Mackenzie said the attacks on Qatar\u2019s LNG hub had fundamentally altered the global gas market outlook, as initial expectations of a two-month disruption at the site were now likely to be exceeded. Each additional month of disruption removes about 1.5% from annual global LNG availability.<\/p>\n The energy company Shell said the attack on Ras Laffan had caused damage to its Pearl GTL (gas-to-liquids) facility. Shell added that the fire was quickly put out, there were no reported injuries and Pearl was now in a \u201csafe state\u201d after Iran attacked the facility in retaliation for the attack on the South Pars gasfield.<\/p>\n Authorities in Abu Dhabi said it had been forced to shut down operations at its Habshan gas facility and Bab oilfield because of Iranian attacks.<\/p>\n Susannah Streeter, the chief investment strategist at the broker Wealth Club, said: \u201cFears 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.<\/p>\n \u201cWarnings that oil could reach $150 a barrel have resurfaced. Israel\u2019s attack on Iran\u2019s gasfields has prompted retaliatory strikes on facilities in Qatar. Europe in particular is reliant on LNG exports from Qatar, as countries have been weaning themselves off dependence on Russia.\u201d<\/p>\n