Oil nears $110 a barrel after gas field strike

Iran's military warned it would take "decisive action" in response to the strike on its energy infrastructure.

Global oil and natural gas prices surged following Iran's attacks on Gulf energy infrastructure, including the Ras Laffan LNG terminal in Qatar and two oil refineries in Kuwait. Brent crude oil rose sharply to $116.38 per barrel, up from under $73 prior to the conflict, while the European TTF natural gas benchmark increased by 24%.

In a major escalation of the ongoing Middle East conflict, Iran launched coordinated attacks on several Gulf Arab nations' energy infrastructure in retaliation for an Israeli strike on its South Pars offshore gas field. On Thursday, Iranian drones and missiles hit key oil and gas facilities in Saudi Arabia, Qatar, Kuwait, and the UAE, setting off fires and forcing shutdowns. The SAMREF refinery in Saudi Arabia's Red Sea port of Yanbu was struck, as were Qatar's Ras Laffan LNG facility and Kuwait’s Mina Al-Ahmadi and Mina Abdullah refineries. Two commercial ships were also damaged near Qatar and the UAE.

The ongoing conflict involving Iran is projected to continue into May following Israel's military strike on Tehran's South Pars gas field, analysts say. The strike, reportedly carried out with the approval of the Trump administration, has intensified tensions across the Persian Gulf and disrupted regional energy infrastructure. Oil prices surged, with Brent crude prices remaining above $110 per barrel. Iran retaliated by attacking key infrastructure, including Qatar’s Ras Laffan Industrial City, a major liquefied natural gas (LNG) export hub, and by maintaining a blockade of the Strait of Hormuz, a vital oil transit route.