Brent crude oil jumped more than 5 per cent on Thursday following renewed concerns over energy supply disruptions in the Middle East after Iran threatened attacks on Gulf facilities in retaliation for a strike on its key gas field.
The benchmark contract climbed 5.1 per cent to $112.84 before retreating to $108 as of 7:48 AM WAT, while West Texas Intermediate rose 2.5 per cent to $98.69 in Asian trade.
The surge comes amid heightened tensions as US President Donald Trump warned he would “massively blow up” Iran’s South Pars gas field if Tehran continued attacks on Qatari energy facilities, which sustained heavy damage on Thursday.
Tehran’s attacks targeted major Gulf energy sites, including Qatar’s Ras Laffan LNG facility, in retaliation for an Israeli strike on Iran’s South Pars gas field, part of the world’s largest natural gas reservoir. Trump called for an immediate halt to the strikes and warned that no further attacks by Israel would occur if Iran ceased targeting Qatar.
Global energy markets have felt the ripple effects of the conflict, with countries as far away as Samoa and Tonga, which rely heavily on imported petroleum, raising alarms about possible fuel shortages and rising costs. In Samoa, about two-thirds of energy generation depends on imported diesel.
The crisis has also exacerbated fuel price inflation in Nigeria, where Premium Motor Spirit (PMS) prices have risen from below N200 per litre in 2023 to over N1,000 per litre, contributing to higher overall inflation and escalating food prices.
