Beirut: Oil prices surged as Iran launched attacks on energy infrastructure in the Middle East, intensifying supply risks amidst growing tensions with the US and Israel.
According to National Nws Aency - Lebanon, international benchmark Brent crude climbed to $113.55 per barrel, marking a 5.74% increase from the previous close of $107.38. Meanwhile, US benchmark West Texas Intermediate (WTI) rose 1.03% to $96.45 per barrel, up from $95.46 in the previous session.
Escalating tensions have resulted in targeted strikes on oil infrastructures, with significant losses within Iran, signaling potential prolonged disruptions in oil supply. Israel's recent attacks on the Aseluye oil refinery and refineries linked to the South Pars natural gas field have further heightened supply concerns.
In response to the attacks on its oil facilities, Iran announced plans to strike US-linked oil facilities in Saudi Arabia, the UAE, and Qatar, issuing evacuation warnings for these areas. Iranian missile strikes on the Ras Laffan area in Qatar, a key LNG processing hub, reportedly caused "extensive damage" to energy infrastructure.
Saudi Arabia reported intercepting four ballistic missiles aimed at Riyadh and thwarting a drone attack targeting a natural gas facility. These developments have pushed Brent crude prices up by around $6 per barrel. Simultaneously, US reserve sales and increased transportation costs have led WTI to trade at its steepest discount to Brent in the last 11 years.
US President Donald Trump stated that Washington had no prior knowledge of the attack, emphasizing that Qatar was not involved. He condemned Iran's strike on Qatar's LNG facilities as "unjust" and "unfair." Trump warned that any Iranian attack on Qatar would prompt a severe US response against the South Pars gas field, regardless of Israel's involvement.
Additionally, the US Federal Reserve's decision to maintain interest rates while signaling a tight monetary policy has raised concerns about the conflict's economic impact. The Fed cautioned that inflation could rise due to ongoing developments involving the US, Israel, and Iran.