Brent Hits $119, Gulf Energy Attacks Raise Global Inflation Risks
Energy prices surged after a wave of attacks in the Persian Gulf targeted LNG facilities and the oil supply chain, raising the risk of disruptions longer than just the closure of the Strait of Hormuz. European gas futures surged 35% (more than double pre-war levels), with Brent hitting $119 per barrel, and European diesel futures briefly reaching $190 per barrel—confirming that the escalation is now directly impacting inflationary inputs.
The primary trigger came from damage at Ras Laffan, Qatar—the world's largest LNG complex—which was described as having suffered "extensive damage" following the missile attack. Further disruptions across the region included the temporary suspension of oil loading on the western route in Saudi Arabia, the shutdown of the Habshan gas facility in Abu Dhabi due to missile debris, and a drone attack that sparked fires at two Kuwaiti refineries. The attack on Qatar is considered to increase long-term inflation risks because repairs to production facilities could take months. In a worst-case scenario, Ras Laffan operations could potentially be disrupted until 2026.
On the policy front, President Donald Trump called for de-escalation and stated that Israel would refrain from further attacks on South Pars, but he also threatened a major response if Iran again targeted Qatari assets. Iran asserted that its response was "underway and not yet complete." The US stated that it would explore ways to increase supply, including the option of lifting sanctions on Iranian oil already on tankers and considering the release of additional emergency reserves. With Asia as a major buyer of Middle Eastern LNG, a prolonged disruption risks tightening the global supply balance and keeping energy prices high for longer. (alg)
Source: Newsmaker.id
