Oil jumps 4% as Iranian strikes on Qatar’s key energy facility stoke supply worries

Oil prices extended gains as the Middle East continued to simmer as attacks on the region’s energy infrastructure fueled fears of supply shortages.

Iran’s missile strikes damaged a key liquefied natural gas export facility, Qatar said on Wednesday. The action came after Tehran warned of attacks on energy facilities in Qatar, Saudi Arabia and the United Arab Emirates after Israel bombed a natural gas processing facility in Iran.

Brent crude oil While May futures contracts were at $111.80 with an increase of 4% as of 20:45 CET. USA West Texas Central April futures contracts rose more than 3% to $99.47.

Qatar said Iran’s missile attacks caused “major damage” to the Ras Laffan Industrial City, the world’s largest LNG export facility.

QatarEnergy said emergency teams were dispatched to fight the fires in Ras Laffan. social media postHe added that there was no loss of life. Qatar Ministry of Internal Affairs later announced that the fire was under control.

Qatar’s Ministry of Foreign Affairs condemned the attack as a “dangerous escalation” and a “blatant violation of sovereignty” and warned that it threatened national security and regional stability. He added that Qatar reserves the right to respond in accordance with international law.

Saudi Arabia and the United Arab Emirates were alarmed after Israel hit Iran’s natural gas processing facility.

Qatar suspended LNG production on March 2 following Iran’s drone attacks on Ras Laffan and Mesaieed Industrial City. The country is the world’s second-largest exporter of LNG after the United States, accounting for almost a fifth of global shipments, according to Kpler.

Increasing attacks on the Middle East’s energy infrastructure risks deepening the supply shock triggered by the Iran war. Tanker movement through the Strait of Hormuz, which carries about 20% of global oil supply, is largely blocked.

— CNBC’s Spencer Kimball contributed to this report.