Brent crude tops $116 as Iran war escalates with attacks on energy infrastructure
Brent crude oil prices surged past $116 per barrel Thursday, up 8.5% following Iranian attacks on Qatari energy plants and Israeli strikes on Iranian refineries. Prices have risen over 50% since the war began Feb. 28, driven by the Strait of Hormuz closure and escalating attacks on regional energy facilities.
Amid escalating tension in the Middle East, the price of Brent crude oil exceeded $116 per barrel on Thursday. As of 0900GMT, the price of Brent crude futures soared by around 8.5% following Iran's attacks on Qatar's energy plants on Wednesday. Brent crude futures have gone up by over 50% since the start of the war on Iran on Feb. 28, related to the closure of the Strait of Hormuz, which is an important route for the global energy trade.
Energy infrastructure targeted
Israel struck the Aseluye oil refinery on the coast of the Persian Gulf in southern Iran, as well as refineries linked to the South Pars natural gas field, heightening supply concerns in the region. The South Pars field is one of the world's largest natural gas reserves, shared between Iran and Qatar, making its targeting particularly significant for global energy markets.
Iranian retaliation warning
Following the targeting of its oil refineries, Iran announced that it would strike US-linked oil facilities in Saudi Arabia, the UAE, and Qatar and issued an evacuation warning for the oil facilities and their surrounding areas. The threat has further destabilized energy markets, with traders pricing in potential supply disruptions from multiple Gulf producers.
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Strait of Hormuz closure
The effective closure of the Strait of Hormuz since early March has removed approximately 20 million barrels of daily oil shipments from global markets, creating a supply shock that has driven prices steadily upward. The waterway normally handles about 20% of global oil consumption and a significant portion of LNG trade.
Conflict context
The US and Israel launched joint attacks on Iran on Feb. 28, killing over 1,300 people according to Iranian authorities, including former Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with strikes targeting Israel and Gulf states hosting US assets, while the conflict has expanded to Lebanon where over one million have been displaced.
Market outlook
With energy infrastructure now directly targeted and threats of further attacks on Gulf facilities, oil markets face sustained upward pressure. Analysts warn that prices could climb higher if the conflict disrupts production or export capacity in major Gulf producers.
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