"The attacks added to fears the energy crisis triggered by the closure of the Strait of Hormuz to tanker traffic may be longer and more extensive than feared, with lasting damage to oil and gas production. Brent crude, the international benchmark, rose nearly 6% to $113.77 per barrel, up from less than $73 per barrel on the eve of the war."
"The Iranian attack hit the Ras Laffan terminal for shipping out liquefied natural gas in Qatar. Qatar normally supplies some 20% of the world's consumption of LNG, which can be carried by ship. The facility shut down after a drone attack. The closure of the Strait of Hormuz to most tanker traffic also left the gas with nowhere to go."
"If the disruptions from Iran's attacks on its Gulf Arab neighbors' energy infrastructure keep oil and gas prices high for long, they could create a debilitating wave of inflation for the global economy. On Wednesday, the Federal Reserve opted to leave its benchmark interest rate alone and projected just one more quarter-point cut this year due to ongoing elevated inflation."
Iran attacked two Kuwaiti oil refineries and Qatar's Ras Laffan liquefied natural gas terminal, causing significant disruptions to global energy supplies. Brent crude oil rose nearly 6% to $113.77 per barrel, while European natural gas prices jumped 17% and have doubled over the past month. Qatar supplies approximately 20% of the world's liquefied natural gas, and the facility's closure combined with the Strait of Hormuz blockade creates severe supply constraints. These disruptions risk prolonged global inflation and economic damage. U.S. stock futures declined ahead of market opening, and precious metals prices fell sharply, with gold dropping 4% and silver declining 8.7%. The Federal Reserve maintained interest rates unchanged while projecting minimal cuts due to elevated inflation concerns.
Read at Fortune
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