Oil surges 4% as Iran-Qatar energy hubs hit, fears of wider supply shock rise

Oil prices surged over 4% as attacks on Iran’s South Pars gas field and Qatar’s Ras Laffan hub raised fears of wider disruptions to global energy supplies.

Crude oil prices surged over 4% on Thursday morning after fresh attacks on key energy infrastructure in West Asia heightened fears of a broader supply shock.

The conflict’s shift toward targeting energy infrastructure has amplified fears of a prolonged supply shock, pushing oil prices higher and exposing import-dependent economies like India to fresh risks.

At 6:20 AM, the April contract of Brent crude on the Intercontinental Exchange was trading at $111.78 per barrel, up 4.10% from its previous close. The April contract of West Texas Intermediate (WTI) on NYMEX rose 3.37% to $99.57 per barrel.

Energy flashpoint

The spike follows Israel’s strike on Iran’s South Pars gas field—the world’s largest—followed by retaliatory attacks by Iran on Qatar’s Ras Laffan industrial city, a major global gas hub.

South Pars is shared by Iran and Qatar (where it is known as the North Field), and any disruption there has immediate global implications.

After Israel’s strikes on the South Pars gas field, Qatar’s foreign ministry spokesman Majed Al Ansari said that attacks on energy infrastructure “constitutes a threat to global energy security”.

Retaliation risk

After threatening to target oil and gas facilities in the region, Iran later struck Ras Laffan, Qatar’s main gas facility.

In a post on X, QatarEnergy said:

“QatarEnergy confirms that Ras Laffan Industrial City this evening has been the subject of missile attacks. Emergency response teams were deployed immediately to contain the resulting fires, as extensive damage has been caused. All personnel have been accounted for and no casualties have been reported at this time.”

Concerns remain that the conflict could now escalate further, with more energy infrastructure across West Asia likely to be targeted.

QatarEnergy, which produces about 20% of the world’s gas, had already halted production earlier in the month after the Ras Laffan complex was hit initially in the war.

In a bid to ease supply concerns and contain prices, the US on Wednesday issued a general licence authorizing certain transactions involving Venezuela’s state oil company PDVSA.

However, analysts say such measures may offer only limited relief if disruptions in the Gulf intensify.

India impact

The surge in oil prices carries significant implications for India, which imports nearly 90% of its crude oil requirements.

Analysts estimate that every $1 per barrel increase in crude prices raises India’s import bill by roughly ₹16,000 crore annually, underscoring the macroeconomic risks of sustained high prices.

The pressure is already visible in the ongoing LPG supply crunch, where disruptions linked to the Strait of Hormuz have tightened availability, forcing the government to prioritize household consumption and curb commercial usage.