"Oil prices have risen more than 5 percent following an Israeli strike on Iran's South Pars gasfield as the United States-Israeli war on the country continues to escalate. Brent crude, the international standard, rose 5 percent to $108.66 a barrel on Wednesday, while US West Texas Intermediate crude gained 2.5 percent to $98.65, widening its discount to Brent to the largest since May 2019 on fears of a prolonged conflict."
"Iranian state media reported that natural gas facilities associated with its offshore South Pars field—the largest gasfield in the world, located off the coast of southern Iran's Bushehr province—were attacked. Promptly after, Iran's Revolutionary Guard threatened to attack oil and gas infrastructure in Qatar, Saudi Arabia and the United Arab Emirates, heightening the risk of further disruptions to energy supplies in the region."
"Fighting has halted most shipments via the Strait of Hormuz, through which 20 percent of global oil and liquified natural gas supplies pass. Total oil output cuts in the Middle East are estimated at 7 million to 10 million barrels per day or 7 percent to 10 percent of global demand."
"If the disruptions keep oil and gas prices elevated for an extended period, experts say the global economy could experience a wave of inflation."
Israeli military strikes on Iran's South Pars gasfield triggered a 5 percent rise in Brent crude to $108.66 per barrel, with US crude gaining 2.5 percent. Iran's Revolutionary Guard threatened attacks on energy infrastructure in Qatar, Saudi Arabia, and the UAE. A subsequent Iranian missile strike caused a fire at Qatar's Ras Laffan gas facility. The escalating conflict has disrupted Middle Eastern oil and gas exports, with fighting halting most Strait of Hormuz shipments through which 20 percent of global oil and liquified natural gas supplies pass. Middle East production cuts are estimated at 7-10 million barrels daily, representing 7-10 percent of global demand. Economists warn that prolonged elevated energy prices could trigger significant global inflation.
#oil-and-gas-prices #middle-east-conflict #global-inflation-risk #energy-supply-disruption #geopolitical-escalation
Read at www.aljazeera.com
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