Brent Crude Surges 10 Per Cent To $119 After Iran Strikes
OIL & GAS

Brent Crude Surges 10 Per Cent To $119 After Iran Strikes

Brent crude surged 10 per cent to $119 per barrel after Iranian strikes on Gulf energy infrastructure, including a missile attack on Qatar's Ras Laffan liquefied natural gas hub and drone strikes on refineries in Saudi Arabia and Kuwait. The attacks sent energy prices sharply higher and weighed on global equity markets as investors assessed the prospect of prolonged supply disruption.

Iranian missiles were reported to have caused extensive damage at Ras Laffan, while drones ignited fires at a Saudi refinery on the Red Sea and at two facilities in Kuwait, prompting immediate concerns about regional output. World oil benchmarks climbed, European gas rose as much as 35 per cent, and international benchmark Brent later retreated to around a six per cent gain while the main US contract, West Texas Intermediate, was up zero point three per cent. Market commentators said the escalation underscored the vulnerability of Gulf energy infrastructure to broader regional hostilities.

Equity markets reflected the shock, with the Frankfurt and London exchanges each losing around two per cent and Paris down one point seven per cent, while Tokyo fell by more than three per cent and other Asian bourses also weakened. Analysts noted that shipping through the Strait of Hormuz had been effectively curtailed at times, affecting one fifth of global oil and gas flows and heightening supply risk. The scale of the price moves prompted fresh debate over the likely duration and economic impact of the disruption.

The surge in energy costs raised concerns about renewed inflationary pressure and the potential for higher policy rates, leaving central banks to weigh the implications for monetary strategy. Recent data showing US wholesale inflation rising more than expected before the attacks was cited as an additional factor that could complicate decisions for the Federal Reserve, the Bank of England and the European Central Bank. Other central banks responded with varied measures, with the Bank of Japan holding rates and the Reserve Bank of Australia increasing its key rate amid sharply higher fuel prices.

Brent crude surged 10 per cent to $119 per barrel after Iranian strikes on Gulf energy infrastructure, including a missile attack on Qatar's Ras Laffan liquefied natural gas hub and drone strikes on refineries in Saudi Arabia and Kuwait. The attacks sent energy prices sharply higher and weighed on global equity markets as investors assessed the prospect of prolonged supply disruption. Iranian missiles were reported to have caused extensive damage at Ras Laffan, while drones ignited fires at a Saudi refinery on the Red Sea and at two facilities in Kuwait, prompting immediate concerns about regional output. World oil benchmarks climbed, European gas rose as much as 35 per cent, and international benchmark Brent later retreated to around a six per cent gain while the main US contract, West Texas Intermediate, was up zero point three per cent. Market commentators said the escalation underscored the vulnerability of Gulf energy infrastructure to broader regional hostilities. Equity markets reflected the shock, with the Frankfurt and London exchanges each losing around two per cent and Paris down one point seven per cent, while Tokyo fell by more than three per cent and other Asian bourses also weakened. Analysts noted that shipping through the Strait of Hormuz had been effectively curtailed at times, affecting one fifth of global oil and gas flows and heightening supply risk. The scale of the price moves prompted fresh debate over the likely duration and economic impact of the disruption. The surge in energy costs raised concerns about renewed inflationary pressure and the potential for higher policy rates, leaving central banks to weigh the implications for monetary strategy. Recent data showing US wholesale inflation rising more than expected before the attacks was cited as an additional factor that could complicate decisions for the Federal Reserve, the Bank of England and the European Central Bank. Other central banks responded with varied measures, with the Bank of Japan holding rates and the Reserve Bank of Australia increasing its key rate amid sharply higher fuel prices.

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