Doha, Qatar – Global oil prices surged after Qatar’s energy minister warned that all Gulf oil and gas exporters could cease production within days. The warning comes as military conflict disrupts critical energy supply routes in the Middle East.
Okay News reports that Saad al-Kaabi issued the stark warning in an interview with the Financial Times on Friday. He stated that the ongoing conflict could “bring down the economies of the world” if shipping through the Strait of Hormuz remains blocked.
Brent crude oil rose to $89.17 per barrel on Friday, marking a 4.4% increase from Thursday’s close. Al-Kaabi projected that prices could soar to $150 per barrel within two to three weeks if the strait remains inaccessible.
Approximately one-fifth of global oil supply normally passes through the Strait of Hormuz daily. Traffic through this narrow passage has nearly halted since military operations between the United States, Israel, and Iran began last weekend.
Al-Kaabi emphasized the global economic consequences of prolonged conflict. He warned that higher energy prices would trigger shortages of products and disrupt factory supply chains worldwide.
Consumers in countries including the United Kingdom are already experiencing increased fuel costs. Natural gas prices have also climbed in response to supply uncertainty.
Current price increases remain below the peaks seen during Russia’s invasion of Ukraine in 2022. However, the rapid escalation of hostilities in the Gulf region poses a significant threat to global energy security.
Qatar ranks among the world’s largest producers and exporters of liquefied natural gas. QatarEnergy suspended LNG production this week following military attacks on its facilities.
Al-Kaabi indicated that resuming normal output would require weeks to months even if hostilities ceased immediately. The company declared force majeure, a legal clause releasing it from supply obligations due to circumstances beyond its control.
He anticipates that other energy exporters will follow suit within days if the conflict continues. Such a coordinated shutdown would remove millions of barrels of daily oil supply from global markets.
The situation underscores the vulnerability of international energy systems to geopolitical disruptions in the Middle East. Economies worldwide remain heavily dependent on stable flows from this strategically vital region.
