Qatar: Global oil prices have surged to their highest level in more than two years after Qatar’s energy minister warned that oil and gas exporters in the Gulf could halt production within days due to escalating conflict in the Middle East.
Brent crude jumped more than 9 percent, rising above $93 per barrel, its highest level since autumn 2023. The surge followed comments by Qatar’s Energy Minister Saad al-Kaabi, who warned that the ongoing regional conflict could disrupt energy exports and trigger serious consequences for the global economy.
Conflict threatens global energy supply
Kaabi warned that if the war in the region continues, energy production across Gulf countries could be forced to stop due to security risks and logistical challenges.
Kaabi cautioned that prolonged disruption could push oil prices as high as $150 per barrel, significantly affecting global economic growth.
According to Kaabi, continued instability in the region could trigger a chain reaction across global supply chains, resulting in product shortages and factory disruptions worldwide.
QatarEnergy to stop production of LNG
Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products.…
— QatarEnergy (@qatarenergy) March 2, 2026
Oil and gas prices rising rapidly
The Middle East plays a critical role in global energy supply, and tensions in the region often have immediate impacts on oil markets.This week, QatarEnergy announced it had suspended liquefied natural gas (LNG) production following military attacks on its facilities and declared force majeure, meaning it cannot guarantee supply due to circumstances beyond its control.
Kaabi said that if the conflict continues, other energy exporters in the Gulf may be forced to follow the same course. Even if the situation stabilizes immediately, he warned that restoring normal production could take weeks or even months.
Strait of Hormuz disruptions raise global concerns
A major concern is the disruption of shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes. Roughly 20 percent of global oil supply normally passes through the narrow waterway each day. However, traffic through the route has nearly stopped since the escalation of the US-Israel conflict with Iran last weekend.
Any prolonged blockade could significantly increase global shipping costs and energy prices. Major oil-importing economies such as China, India, and Japan depend heavily on crude shipments passing through the strait, making them particularly vulnerable to disruptions.
Economic impact already emerging
Rising oil prices are already affecting consumers in some countries. In the United Kingdom, the RAC reported that petrol prices have increased by 3.7 pence per litre, while diesel prices have risen by 6 pence, reaching a 16-month high.
The UK’s Competition and Markets Authority said it is closely monitoring developments in fuel pricing. Higher energy costs can also influence the prices of heating, food production, manufacturing, and imported goods.
Inflation risks and economic uncertainty
Experts warn that if energy prices remain elevated, inflation could rise again in major economies such as the United States and the United Kingdom, where inflation had been gradually declining. Analyst Jorge Leon from Rystad Energy said the situation presents a significant risk to the global economy.
Governments may tap strategic oil reserves
If oil prices climb above $100 per barrel, governments may begin releasing oil from strategic reserves to stabilize markets, a measure previously used during the 2022 Russia-Ukraine war.
However, investment strategist Lindsay James from Quilter described a complete halt to Gulf oil and gas production as an extreme scenario.
She added that while markets currently expect disruptions in the Strait of Hormuz to be resolved quickly, the risk of prolonged conflict increases with each passing day.
Energy costs could hit households
Experts say households will likely feel the impact mainly through rising energy costs rather than widespread inflation. Higher fuel and electricity prices could slow economic growth if they remain elevated for a prolonged period.
While UK food inflation may remain relatively stable due to alternative supply routes, persistently high energy prices could still weigh heavily on global economic activity.
TRENDING | Evacuations underway as floods threaten Northern Territory and Queensland
