Qatar Warns War Will Force Gulf to Halt Energy Exports Within Days
Qatar's energy minister warned that war in the Middle East could bring down global economies and cause oil prices to soar. Saad al-Kaabi said all Gulf energy exporters would shut down production within days due to the conflict.
The minister stated that even if hostilities cease immediately, it will take Qatar 'weeks to months' to restore deliveries after an Iranian drone strike at its largest liquefied natural gas plant. The attack forced Qatar to declare force majeure this week.
Qatar's energy minister predicted oil prices could reach $150 a barrel in two to three weeks if tankers and merchant vessels cannot pass through the Strait of Hormuz. He also forecasted that gas prices would rise to $40 per million British thermal units (€117 per MWh), almost four times their pre-war level.
The disruption of maritime trade will not only impact energy markets but also multiple industries as the region produces much of the world's petrochemicals and fertilizer feedstocks. The Strait of Hormuz is a critical waterway for global oil supply, and traffic has slowed to a halt since the U.S. and Israel launched their attack on Iran.