Oil surges past $110 after strikes on Iran, Qatar gas fields

Global oil prices climbed above $110 a barrel on Thursday after fresh strikes on critical energy infrastructure in the Middle East heightened fears of supply disruptions and escalation in the Iran conflict.

Brent crude, the global benchmark, rose as high as $112 per barrel in early Asian trading — more than 5% higher than earlier in the week — after reports that Iran’s South Pars gas facility, one of the world’s largest natural gas fields, had been hit.

The spike came hours before Qatar confirmed “extensive damage” at its Ras Laffan industrial site following what it described as an Iranian strike, marking a sharp escalation in attacks on energy assets across the region.

While prices later eased slightly, they remain elevated, underscoring the fragility of global energy markets. Oil had previously surged to $116.78 earlier in March at the height of the conflict.

Gas markets also reacted sharply. The UK benchmark gas price jumped about 6% before retreating, reflecting broader concerns over supply risks tied to the Gulf region, a critical hub for global energy flows.

Iran’s oil ministry said a fire at the South Pars petrochemical complex was under control, but its military signalled further escalation.

“As previously warned, if the fuel, energy, gas, and economic infrastructures of our country are attacked… we will severely strike the origin of that aggression,” the military said, adding that it considered such targets “legitimate” for retaliation.

Qatar, which shares the offshore gas field — known locally as North Dome — warned the attacks posed a direct threat to global energy stability. Foreign ministry spokesman Majed Al Ansari said strikes on energy infrastructure “constitutes a threat to global energy security.”

Authorities in Doha said a fire at Ras Laffan had been brought under control, with no casualties reported.

The escalating tit-for-tat attacks have raised alarm over the security of supply routes, particularly the Strait of Hormuz, through which a significant portion of the world’s oil and gas passes.

“Any solution to the blockage of the Strait of Hormuz looks pretty distant at this point and until there is progress on that front, energy markets will likely remain volatile,” said Danni Hewson, head of financial analysis at AJ Bell.

The White House responded by temporarily waiving the Jones Act, allowing foreign vessels to transport fuel between U.S. ports in a bid to ease supply constraints. Press Secretary Karoline Leavitt said the move would allow “vital resources like oil, natural gas, fertiliser, and coal to flow freely.”

However, industry groups downplayed the impact, noting that rising crude prices — not shipping constraints — remain the main driver of higher fuel costs.

The conflict has already disrupted regional supply chains. Iran has suspended gas exports to Iraq to prioritise domestic demand, while Qatar had earlier halted some production amid rising tensions.

Financial markets reacted negatively to the uncertainty. Major Asian stock indices fell in early trading, with Japan’s Nikkei and South Korea’s Kospi both declining sharply.

With energy infrastructure now directly in the crosshairs, analysts warn that markets could face sustained volatility — especially if attacks spread or intensify across the Gulf.