Oil prices climbed sharply in early Asian trading on Thursday as the Middle East conflict continued to escalate and energy infrastructure was targeted across the Gulf.
At the time of writing, Brent crude had climbed to $112.00, up 4.27%, while West Texas Intermediate had risen 2.73% to $98.95.
The latest price spike came after Iran targeted energy infrastructure across the Middle East in retaliation for earlier strikes on its South Pars gas field.
Qatar confirmed that Iranian missile strikes had caused “extensive damage” around the Ras Laffan industrial complex, the world’s largest liquefied natural gas facility and a cornerstone of global gas supply.
Meanwhile, the United Arab Emirates suspended operations at its Habshan gas facility after missile-related incidents, with debris from intercepted projectiles reportedly affecting additional energy infrastructure, including the Bab oil field.
Saudi Arabia, Kuwait, Iraq, and Bahrain continue to be targeted by Iran, with Saudi Arabia reporting that air defences had destroyed a total of 19 drones in the Eastern Province and four missiles launched toward Riyadh.
Shipping also remained under threat, with the UK’s maritime security agency reporting that a vessel east of the Strait of Hormuz caught fire after being struck by an “unknown projectile.” (OilPrice.com)