Brent crude hits $115 after Iran attacks energy facilities in West Asia

Qatar's state oil and gas company said the Ras Laffan Industrial City, an energy-industry hub, had suffered "extensive damage" after it was hit by Iranian missiles

Oil prices jumped sharply on Thursday, with benchmark Brent crude rising to more than $115 a barrel, the highest since March 9, after Iran attacked energy facilities across the Middle East following Israel’s strike on its South Pars gas field, marking a major escalation in the ongoing conflict.

 

Brent futures rose $6.08, or 5.7 per cent, to $113.46 a barrel by 0814 GMT, after earlier climbing nearly $8 to a session high of $115.10. US West Texas Intermediate (WTI) crude gained 57 cents, or 0.6 per cent, to $96.89 a barrel, after reaching $100.02 earlier in the session.

 

WTI has been trading at its widest discount to Brent in 11 years, due to US strategic reserve releases and higher freight costs, while renewed attacks on Middle Eastern energy infrastructure boosted support for Brent.

 

 

"Escalation in the Middle East, precise attacks on oil infrastructure, and the death of Iranian leadership all point to a prolonged disruption in oil supplies," said Phillip Nova analyst Priyanka Sachdeva.

 

"Adding fuel to the fire, the Federal Reserve served 'steady rates' with a hawkish narrative, pointing to the economic concerns that follow a war."

 

US Fed holds rates steady

 

The US central bank held interest rates steady on Wednesday, projecting higher inflation as policymakers assess the economic impact of the US-Israel war with Iran.

 

Attacks on Gulf energy infrastructure

 

QatarEnergy reported extensive damage to its Ras Laffan LNG processing hub from Iranian missile strikes. Saudi Arabia intercepted four ballistic missiles aimed at Riyadh and thwarted a drone attack on a gas facility. Saudi Aramco’s SAMREF refinery in Yanbu was also targeted. Kuwait Petroleum Corporation reported a limited fire at its Mina al-Ahmadi refinery following a drone strike.

 

Iran issued evacuation warnings for several oil facilities across Saudi Arabia, the UAE, and Qatar before the attacks, responding to earlier strikes on its own energy infrastructure at South Pars and Asaluyeh. South Pars, shared with Qatar, is the world’s largest natural gas deposit.

 

Israel conducted the strike on the South Pars gas field. President Donald Trump said the United States and Qatar were not involved and warned that Israel would not attack the field again unless Iran targeted Qatar. He also stated that the US would respond if Iran acted against Doha.

 

Earlier reports indicated that the Trump administration is considering deploying thousands of US troops to reinforce operations in the Middle East, in preparation for next steps against Iran.