By Abiola Olawale
Global energy markets are entering a “danger zone” as the conflict involving Iran, Israel, and the US threatens to paralyze the world’s most critical shipping lane.
Qatar’s Energy Minister, Saad Sherida al-Kaabi, issued a stark warning Friday, stating that crude oil prices could skyrocket to $150 per barrel within three weeks if hostilities continue to obstruct energy exports from the Persian Gulf.
The warning follows a series of escalations that have effectively turned the Strait of Hormuz into a no-go zone. On March 2, Iranian drone strikes targeted Qatar’s Ras Laffan Industrial City, forcing the Gulf nation to halt production of Liquefied Natural Gas (LNG)—which accounts for 20% of the global supply.
Earlier this week, Qatar officially declared force majeure on gas deliveries, a move that sent European gas prices surging by over 40%. Minister al-Kaabi noted that even an immediate ceasefire would not provide instant relief.
”Even if hostilities stopped today, it could take weeks to months for Qatar to restore normal delivery cycles,” al-Kaabi told the Financial Times. “The world must prepare for the possibility of a total cessation of Gulf energy shipments.”
Al-kaabi made the forecast on Friday in an interview with the Financial Times.
Al-Kaabi also cautioned that natural gas prices could climb to $40 per metric million British thermal units (MMBtu) if supply disruptions continue — almost four times higher than the levels recorded before the war.
He said if the conflict persists, energy producers across the Gulf region may be compelled to declare force majeure, potentially leading to the suspension of energy deliveries.
“Everybody who has not called for force majeure we expect will do so in the next few days if this continues. All exporters in the Gulf region will have to call a force majeure,” Al-kaabi said.
“If they don’t, they are at some point going to pay the liability for that legally, and that’s their choice.”
On March 2, QatarEnergy, the state-owned energy company of Qatar, said it had halted the production of liquefied natural gas (LNG) due to Iranian military attacks on its operating facilities.
Al-kaabi, addressing the shutdown, said the government and QatarEnergy are still assessing the extent of the damage to the facility.
“We don’t yet know the extent of the damage, as it is currently still being assessed. It is not clear yet how long it will take to repair,” he said.
The New Diplomat reports that Nigerians have been battling with a petrol pump price surge since the Middle East crisis.
On March 5, the Nigerian National Petroleum Company (NNPC) Limited increased petrol price at its retail outlets to N933 per litre in Lagos and N960 per litre in Abuja.
The hike came after the Dangote Petroleum Refinery increased its ex-gantry petrol price to N874 per litre, from N774 per litre.
