The ongoing escalation in West Asia has spread to key energy facilities, triggering market concerns over supply disruptions, and international oil prices soared on the 19th, with Brent crude rising more than 5% at one point.
According to reports from AFP and Bloomberg, Brent crude oil futures rose about 5.1% during Asian trading, reaching $112.84 per barrel; US West Texas Intermediate (WTI) crude was also up about 2.5%, near $98.69.
The market volatility mainly stems from the further escalation of conflict between Iran and Israel. Iran had previously warned it would retaliate for an attack on the South Pars gas field and has reportedly launched strikes on Qatar’s key liquefied natural gas (LNG) facilities. Qatar's Ras Laffan Industrial City was reportedly hit by missile attacks and suffered "severe damage". This area is one of the world's largest LNG export bases.
Meanwhile, the UAE stated that its Habshan gas facility was affected and operations suspended during the interception of missiles; Bahrain denied reports of attacks on its energy infrastructure. Multiple attacks on energy infrastructure have heightened market fears of supply chain disruptions.
Since the outbreak of the conflict nearly three weeks ago, international oil prices have risen by about 50% in total. Market observers pointed out that, while previous clashes mainly targeted military objectives, attacks have now clearly expanded to energy facilities, signaling that risks of shocks to global energy supplies are increasing.
Khurshid, chief investment officer of Chicago-based Karobaar Capital, noted that the market is still underestimating the speed and scope of this escalation. "If the conflict expands to a broader range of Gulf energy infrastructure, $120 will not be the ceiling for Brent crude, but possibly just the starting point. It could even surge to $140 to $160."