Gulf Energy Exports at Risk Amid Iran Conflict

Qatar's Energy Minister warns of a significant halt in Gulf energy exports if the Iran conflict persists, potentially driving oil prices to $150 a barrel. Qatar has already paused its LNG production, and other Gulf exporters may follow. This crisis threatens global energy markets and economic growth.

Qatar's Energy Minister, Saad al-Kaabi, has issued a stark warning that ongoing conflict with Iran could soon force all Gulf energy producers to halt exports, potentially driving oil prices as high as $150 a barrel. Speaking to the Financial Times, al-Kaabi explained the dire outlook if the situation escalates over the coming weeks.

Qatar, a major player in the liquefied natural gas market, has already ceased LNG production in response to Iranian reprisals against Israeli and U.S. attacks, which are affecting Gulf countries. This cessation significantly impacts the global LNG supply, affecting balance in both Asian and European markets.

Al-Kaabi indicated that other Gulf exporters will likely declare force majeure shortly if the conflict continues. The resulting impact on global GDP growth could be substantial, with rising energy prices leading to product shortages and supply chain disruptions. Qatar's LNG operations could take weeks or months to normalize even if the conflict ends immediately, according to al-Kaabi.

(With inputs from agencies.)