Global oil and gas prices climbed sharply on Monday as Iran continued missile and drone strikes across the Middle East in retaliation for ongoing attacks by the United States and Israel, raising fears of wider disruption to energy supplies.
As reported by the BBC, natural gas prices spiked by nearly 50 per cent after state-owned QatarEnergy suspended liquefied natural gas production following alleged military attacks on its facilities.
Brent crude, the global oil benchmark, jumped 10 per cent to more than $82 per barrel after at least three vessels were attacked near the Strait of Hormuz over the weekend.
Prices later eased to around $79 per barrel, while US-traded crude rose 7.6 per cent to $72.20.
Iran has warned ships against passing through the Strait of Hormuz — a critical maritime chokepoint through which about 20 per cent of the world’s oil and gas flows.
Shipping traffic at the entrance to the strait has slowed dramatically, with analysts warning that prolonged hostilities could push oil prices above $100 per barrel.
Qatar’s Ministry of Defence said a drone launched from Iran targeted a facility in Ras Laffan Industrial City, prompting QatarEnergy to halt LNG production.
Another drone reportedly struck a water tank at a power plant in Mesaieed, south of Doha.
In neighbouring Saudi Arabia, Aramco temporarily shut down its major oil refinery at Ras Tanura after it was hit by a drone.
The UK Maritime Trade Operations Centre reported that two vessels were struck in separate incidents, while an “unknown projectile” exploded near a third ship.
Iran’s Islamic Revolutionary Guards Corps claimed that three UK and US tankers had been hit, although London and Washington have not commented.
More than 150 tankers have anchored in Gulf waters beyond the Strait of Hormuz, according to shipping data, as operators assess security risks.
PUNCH Online reported on Sunday that Danish shipping giant Maersk paused sailings through the Bab el-Mandeb Strait and the Suez Canal, rerouting vessels around the Cape of Good Hope.
Dangote refinery hikes fuel price
Meanwhile, in the local market, Dangote Petroleum Refinery has increased its Premium Motor Spirit gantry price by N101, raising the ex-depot rate from N774 to N875 per litre.
A senior official at the refinery confirmed the development to The PUNCH, noting that the adjustment followed recent volatility in global crude oil prices.
“Yes, the price has been reviewed. The new gantry price is now N875 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official said.
Five energy experts, in separate interviews with The PUNCH on Sunday, warned that Nigeria could witness further increases in petrol and diesel prices if crude oil prices climb above $90 per barrel.
They said sustained hostilities in the Middle East could disrupt global supply chains, increase shipping and insurance costs, and raise import and refining costs for products, despite Nigeria’s growing local refining capacity.
Global market
Apart from energy, financial markets also reacted negatively to the escalating tensions.
In the United States, the Dow Jones Industrial Average fell nearly 1 per cent at the open, while the Nasdaq and S&P 500 also declined.
London’s FTSE 100 dropped 1 per cent, with airline and banking stocks among the worst hit.
Major European indices saw steeper losses, with France’s CAC 40 down 1.8 per cent and Germany’s DAX falling 2.1 per cent.
Gold prices, considered a safe-haven asset during periods of uncertainty, rose 2 per cent to $5,388 an ounce.
