OIL surged more than 5 percent on Thursday and stocks sank as Iran attacked several Gulf energy facilities and warned of more in retaliation for a strike on one of its key gas fields.
Brent crude soared past $113 per barrel as Tehran threatened to target regional installations after an Israeli hit on a site serving its massive South Pars field, which it shares with Qatar.
Iranian missiles struck Qatar’s Ras Laffan, the world’s largest liquefied natural gas (LNG) hub, causing extensive damage and stoking energy supply fears as the war grinds on.
European gas jumped more than 30 percent after the strikes.
United States President Donald Trump said Washington “knew nothing” of Israel’s attack on South Pars, but vowed “NO MORE ATTACKS WILL BE MADE BY ISRAEL” on the site if Tehran stops attacking Qatar.
But if Iran did not comply, the US would “massively blow up the entirety of the South Pars Gas Field,” Trump warned.
The Iranian strikes on Qatar came as Abu Dhabi shut down operations at a gas facility due to falling debris from missile interceptions.
Meanwhile, the UN nuclear watchdog said Iranian authorities had reported a projectile impact at the country’s only operational nuclear power plant but that it caused no damage.
“We warn you once again that you made a big mistake in attacking the energy infrastructure of the Islamic republic,” the Revolutionary Guards said in a statement carried by Iranian media.
“If it is repeated again, further attacks on your energy infrastructure and that of your allies will not stop until it is completely destroyed.” Iran’s President Masoud Pezeshkian wrote on X that the attacks on South Pars “will complicate the situation and could have uncontrollable consequences, the scope of which could engulf the entire world.” Brent spiked more than 5 percent to hit a peak of $113.77, its highest since the first Monday after the Feb. 28 US-Israeli strikes on Iran, when it nearly touched $120. West Texas Intermediate was sitting around $97.
The increased tension hit equities, which had enjoyed a broadly positive start to the week thanks to a fresh rally in tech firms.
Tokyo tanked more than 3 percent and Seoul more than 2 percent. Hong Kong, Shanghai, Sydney, Singapore, Taipei, Wellington, Mumbai, Manila and Bangkok were also down.
French President Emmanuel Macron said on X: “It is in the common interest to implement without delay a moratorium on strikes targeting civilian infrastructure, particularly energy and water infrastructure.”
