Qatar warns that oil prices could hit $150 Per Barrel amid Middle east tensions
Qatar’s Energy Minister, Saad Al-Kaabi, has warned that crude oil prices could soar to $150 per barrel within the next two to three weeks if maritime traffic through the Strait of Hormuz remains blocked.
Speaking to the Financial Times on Friday, Al-Kaabi said escalating tensions in the Middle East are disrupting key shipping routes and could severely impact global energy markets.
The Strait of Hormuz, a narrow passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, serves as the primary maritime route for oil and gas exports from Gulf producers. On March 2, major shipping lines suspended sailings through both the Strait of Hormuz and the Suez Canal due to security concerns following US and Israeli strikes on Iran.
Al-Kaabi added that natural gas prices could rise to $40 per million British thermal units (MMBtu) if supply disruptions continue—nearly four times pre-conflict levels. He also warned that Gulf energy producers may soon be forced to declare force majeure, suspending energy deliveries to avoid legal liabilities.
“Everyone that has not yet declared force majeure is expected to do so in the coming days if the situation persists,” Al-Kaabi said.
The minister confirmed that QatarEnergy, Qatar’s state-owned energy company, has temporarily halted liquefied natural gas (LNG) production following Iranian military attacks on its facilities. Authorities are still assessing the damage and say restoring normal export operations could take weeks to months, even if hostilities stop immediately.
Saudi Arabia’s state oil company, Saudi Aramco, also suspended operations at its Ras Tanura refinery after a fire caused by debris from an Iranian drone attack.
Global supply disruptions have already affected fuel prices in Nigeria. On March 5, the Nigerian National Petroleum Company (NNPC) Limited raised petrol prices at its retail outlets to N933 per litre in Lagos and N960 per litre in Abuja.
With tensions showing no immediate signs of easing, energy markets worldwide are bracing for further price shocks in the coming weeks.
