Oil, natural gas prices soar as Iran attacks Gulf energy facilities; Brent crude nears USD 114

Bangkok: Global oil and natural gas prices soared Thursday after Iran attacked a key natural gas facility in Qatar that can supply one-fifth of the worlds gas as well as two oil refineries in Kuwait. 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 to near USD 114 per barrel, up from under USD 73 per barrel on the eve of the war. The European TTF benchmark for natural gas prices traded 24 per cent higher on Thursday. The Iranian attack hit the Ras Laffan terminal for shipping out liquefied natural gas in Qatar. Qatar normally supplies some 20 per cent 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 has left the gas with nowhere to go.