Global oil prices have surged sharply after fresh attacks on energy infrastructure across the Middle East, intensifying concerns over supply disruptions. Analysts warn prices could rise even further if the conflict escalates.
Oil prices climbed significantly on Thursday, with global benchmarks recording notable gains. British Brent crude surged by more than 5%, crossing $113 per barrel and later reaching around $114.35, its highest level in over a week.
Meanwhile, US West Texas Intermediate (WTI) crude rose by about 1.1% to around $97.36–$97.43 per barrel.
Earlier in the trading session, Brent crude had already jumped more than $7, marking a 6.5% increase. WTI also briefly climbed above $100 per barrel before settling slightly lower, reflecting ongoing volatility in global markets.
Brent had closed up 3.8% on Wednesday, while WTI ended nearly flat.
Middle East attacks trigger supply concerns
The surge follows Iran’s missile attacks on energy facilities across the Middle East, including Qatar’s Ras Laffan LNG hub, which suffered “extensive damage,” according to QatarEnergy.
Saudi Arabia confirmed it intercepted four ballistic missiles targeting Riyadh and thwarted a drone attack on a gas facility. Saudi Aramco’s SAMREF refinery in Yanbu and Kuwait’s Mina al-Ahmadi refinery were also targeted, with limited damage reported.
Iran retaliates after South Pars strike
The escalation comes after Israel struck Iran’s South Pars gas field, the Iranian portion of the world’s largest natural gas reserve shared with Qatar.
Iran responded by issuing evacuation warnings and launching attacks on oil and gas facilities across Saudi Arabia, the UAE, and Qatar.
Oil supply in the Middle East is estimated to have dropped by 7 to 10 million barrels per day due to the ongoing conflict. Analysts warn that continued disruptions could push oil prices as high as $150 to $200 per barrel.
The US Federal Reserve held interest rates steady but signaled concerns over rising inflation due to the war. Higher energy costs are expected to further fuel inflationary pressures globally.
Geopolitical tensions intensify market uncertainty
US President Donald Trump stated that Israel carried out the South Pars attack without involvement from the US or Qatar. He warned that further escalation could trigger a response if Iran targets Qatar again.
Meanwhile, reports suggest the US is considering deploying additional troops to the Middle East, adding to market uncertainty.
With no signs of de-escalation and continued attacks on energy infrastructure, oil prices are expected to remain volatile. Experts believe sustained disruption in supply chains and shipping routes could keep global crude prices elevated in the coming weeks.
