Prakash Kafle/ Kathmandu. Oil and gas prices surged sharply on Monday after Iran launched a series of attacks across the Middle East in response to ongoing strikes by the United States and Israel, raising concerns about global energy security. One of the world’s largest exporters, QatarEnergy, announced a halt in natural gas production after drones targeted its facilities in the Laffan Industrial Area, forcing natural gas prices to climb nearly 50 percent. At the same time, the global benchmark Brent crude jumped 10 percent to exceed $82 per barrel following attacks on at least three vessels near the Strait of Hormuz, a key maritime route through which almost 20 percent of the world’s oil is transported. In Saudi Arabia, drone strikes temporarily suspended operations at the Ras Tanura oil refinery, adding further pressure to global supply chains.
The uncertainty also hit international financial markets. London’s FTSE 100 index fell 1 percent, while major European stock markets recorded even steeper declines. Airline shares, including those of the company owning British Airways, suffered significant losses due to disruptions in Middle Eastern airspace. Banking stocks, such as Barclays, Standard Chartered, and HSBC, also dropped, as investors reacted to the risk of prolonged instability. During times of heightened uncertainty, gold — considered a safe-haven asset — rose 2 percent to reach $5,388 per ounce.
Analysts warned that if the conflict continues, oil prices could surge above $100 per barrel, potentially driving up global inflation and influencing interest rate policies. Although the oil-producing alliance OPEC+ has agreed to increase daily output by 206,000 barrels, experts say this may provide limited relief given the scale of the disruptions. After the initial surge, Brent crude eased slightly to $79 per barrel, while U.S. benchmark oil rose 7.6 percent to $72.20 per barrel. Industry experts noted that markets will closely monitor the resumption of energy transport and production, which could stabilize prices, but the situation remains highly volatile amid ongoing geopolitical tensions.
