The cause of the new wave of increases was the launch of Iranian missiles targeting the Ras Laffan Industrial City in Qatar. The complex hosts the world’s largest Liquefied Natural Gas (LNG) production facility.
Oil and gas prices are trading sharply higher this Thursday, March 19, as attacks on energy infrastructure in the Middle East intensify amid the escalation of the war involving the United States (US) and Israel against Iran.
Brent crude, the benchmark for Angolan exports, surged to nearly $115 per barrel, while natural gas rose 4.90% to $3.2, after Iran launched missile attacks on the world’s largest LNG infrastructure in Qatar, in direct retaliation for an Israeli strike on the South Pars gas field.
“A retaliatory attack on Ras Laffan is what the global natural gas market feared most,” an energy analyst noted, pointing to the potential for massive disruption in global gas supply. The U.S. market reacted immediately, with natural gas futures climbing 4.90% to $3.2 per million British thermal units (MMBtu), according to Trading Economics data.
Meanwhile, the international community is attempting to manage the crisis without triggering further escalation. U.S. President Donald Trump revealed he had prior knowledge of the Israeli attack on the South Pars field but reportedly called for restraint against further strikes on Iranian energy sites.
In an effort to mitigate domestic impact, the U.S. administration temporarily suspended the Jones Act, allowing foreign-flagged vessels to operate between American ports, thereby reducing transportation costs for oil and gas.
Source: Economia & Mercado
