Oil prices surged during Thursday's Asian trade after Iran launched attacks on energy infrastructure across the Middle East, marking a significant escalation in its conflict involving the United States and Israel.
By 2:50 pm AEDT (3:50 am GMT), Brent crude futures rose $4.10, or 3.8%, to US$111.48 per barrel, while West Texas Intermediate crude for May delivery gained $0.73, or 0.8%, to $96.19.
The latest gains followed a strong session on Wednesday, when Brent closed up 3.8% while WTI finished largely unchanged. WTI has been trading at its widest discount to Brent in more than a decade amid releases from U.S. strategic reserves and higher freight costs, while escalating attacks on Middle Eastern energy infrastructure provided additional support to global benchmark prices.
The surge in prices came after Iranian strikes targeted key facilities across the region. QatarEnergy said in a social media post that missile attacks on Ras Laffan, the centre of Qatar’s liquefied natural gas operations, caused “extensive damage” to its energy hub.
The United Arab Emirates also halted some operations after incidents at the Habshan gas facilities and the Bab oil field, where falling debris from intercepted missiles disrupted activity.
Meanwhile, Reuters reported that Saudi Arabia intercepted and destroyed four ballistic missiles launched toward Riyadh.
Iran had issued evacuation warnings ahead of its retaliatory strikes, targeting oil facilities across Saudi Arabia, the UAE and Qatar following attacks on its own infrastructure in South Pars and Asaluyeh.
South Pars, located in Iran’s territorial waters, forms part of the world’s largest natural gas field, which it shares with Qatar across the Gulf.
Meanwhile, according to exclusive reporting from Reuters, Donald Trump’s administration is considering deploying additional U.S. forces to the region as it prepares the next phase of its campaign against Iran.
