Live updates: Follow the latest news on US-Iran war
Oil prices surged on Thursday after major energy sites in the Middle East were attacked amid the continuing regional war.
Brent, the benchmark for two thirds of the world's oil, was up 4.39 per cent at $112.09 a barrel at 7.02am UAE time on Thursday. West Texas Intermediate, the gauge that tracks US crude, was trading 0.78 per cent higher at $97.07 per barrel. Both benchmarks recorded a fourth consecutive weekly gain last week.
Crude prices, which touched nearly $120 a barrel last Monday, soared as Iran attacked energy sites in the Gulf after an Israeli strike on its South Pars and Asaluyeh energy assets on Wednesday. Iran shares the giant South Pars gasfield with Qatar.
Qatar's Ministry of Defence on Thursday said that its Ras Laffan Industrial City, home to the world’s largest liquefied natural gas export plant, was attacked in a ballistic missile strike from Iran that resulted in “extensive damage”.
Meanwhile, the UAE also said on Wednesday that its Habshan gas plant and Bab field were the focus of an Iranian attack. The gas facilities have been shut down and no injuries have been reported, Abu Dhabi Media Office reported.
Oil prices have already risen about 50 per cent since the start of the war on February 28, as the Strait of Hormuz, the transit route for about a fifth of the world's oil, remains effectively shut.
US President Donald Trump said the US was not aware about Israel’s plan to attack on the South Pars gasfield, but criticised Tehran's strike on Qatar.
“No more attacks will be made by Israel pertaining to this extremely important and valuable South Pars Field unless Iran unwisely decides to attack a very innocent, in this case, Qatar – in which instance the United States of America, with or without the help or consent of Israel, will massively blow up the entirety of the South Pars gasfield,” he said on Truth Social.
Earlier this week, Mr Trump had said the country could attack oil infrastructure on Iran’s main export centre, Kharg Island, after it hit military targets on the site.
Asaluyeh, which was hit by Israel, is a port city that serves as the onshore processing centre for the South Pars gasfield and is home to a dense cluster of petrochemical plants, refineries and export terminals. Details of the strike have not yet been determined, but any disruption in Asaluyeh would affect Iran's ability to process and export hydrocarbons from the field.
Iranian gas flows to Iraq were abruptly halted on Wednesday after the attack. The Iraqi Ministry of Electricity confirmed the disruption, warning of immediate effects on power generation nationwide. Ministry spokesman Ahmed Moussa said the suspension had already forced about 3,100 megawatts offline.
Tehran supplies between 30 per cent and 40 per cent of Iraq's electricity and gas needs.
