Report: Qatar energy minister warns Iran war could push oil to $150
Gulf exporters may halt production within weeks after the Iranian strike on a major LNG facility, Qatar’s energy minister tells the FT
Saad al-Kaabi, Qatar’s energy minister, warned that the ongoing war in the Middle East could severely disrupt global energy markets and push oil prices to $150 a barrel. Speaking to the Financial Times, Kaabi said continued fighting could force Gulf energy exporters to halt production within weeks, with wide-ranging economic consequences worldwide.
“If this continues, oil will hit $150,” Kaabi said, warning that the conflict could “bring down the economies of the world.” He added that Gulf exporters may soon be unable to meet their contractual obligations due to the escalating regional security situation.
The warning comes after an Iranian drone strike targeted Qatar’s largest liquefied natural gas facility at Ras Laffan Industrial City. The attack forced Qatar to declare force majeure this week, temporarily suspending its ability to meet certain delivery commitments. Qatar is the world’s second largest producer of liquefied natural gas.
Kaabi said that even if the war ended immediately, it would take “weeks to months” for Qatar to return to a normal cycle of gas deliveries following the disruption. The strike has raised concerns about the vulnerability of critical energy infrastructure across the Gulf as the conflict involving Iran, Israel, and the United States continues to escalate.
According to Kaabi, other Gulf exporters could soon face similar disruptions. “Everybody that has not called for force majeure, we expect will do so in the next few days that this continues,” he said. “All exporters in the Gulf region will have to call force majeure.”
While Qatar exports only a small share of its gas to Europe, Kaabi warned the region would still face significant pressure in energy markets. He said Asian buyers would likely outbid European customers for available gas supplies if Gulf exports decline.