Oil prices surged above $93 per barrel after fresh warnings that the conflict involving Iran could disrupt energy exports from the Gulf, raising fears of a new global inflation shock.
Brent crude jumped more than 9% to as high as $93.20 a barrel on Friday, its strongest level since October 2023, when attacks by Hamas on Israel triggered a sharp rise in geopolitical tensions.
The spike in oil prices unsettled financial markets and sparked a broad sell-off in equities. The FTSE 100 closed down 1.24% on Friday as investors worried that rising energy costs could reignite inflation and slow economic growth.
The surge followed stark warnings from Saad al-Kaabi, who said an energy crisis triggered by the conflict could “bring down the economies of the world”.
He predicted that oil exporters across the Middle East might be forced to halt production within weeks if the war continues.
Speaking to the Financial Times, al-Kaabi said: “This will bring down the economies of the world. If this war continues for a few weeks, GDP growth around the world will be impacted. Everybody’s energy price is going to go higher.
“There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”
Saad al-Kaabi said it could take Qatar “weeks to months” to restore normal energy deliveries even if the conflict ended immediately.
Qatar, the world’s second-largest producer of liquefied natural gas, was forced to halt output at its Ras Laffan Industrial City facility after Iranian drone strikes. The country has since declared force majeure, releasing it from contractual supply obligations following the suspension of production.
While Qatar accounts for roughly 1% of the United Kingdom’s gas supply, it is a far more significant exporter to Asian markets.
Energy markets have reacted sharply to the escalating conflict, with oil prices climbing nearly 30% since hostilities began about a week ago.
The turbulence has also weighed on US equities. The S&P 500 fell almost 1.2% on Friday, while the Nasdaq Composite dropped 0.9% and the Dow Jones Industrial Average declined 1.3%.
