Brent crude oil surpassed $119 a barrel Thursday as attacks on energy infrastructure across the Middle East escalated, prompting President Donald Trump to intervene directly with Israel regarding strikes on Iranian facilities.
The surge in oil prices followed Iranian missile attacks on Qatar’s Ras Laffan liquified natural gas field, causing significant fires and damage, and reports of an Israeli strike against Iran’s South Pars gas field. Qatar Energy had already halted LNG production earlier this month due to prior attacks. European natural gas prices also rose sharply, increasing by approximately 20% Thursday morning, according to Kathleen Brooks, research director at XTB.
President Trump stated he “knew nothing” of the Israeli strike but pledged to “massively blow up the entirety” of Iran’s South Pars gas field should Iran retaliate against Qatar’s facilities. He also reportedly discussed stabilizing the global energy market with Japanese Prime Minister Sanae Takaichi during a U.S.-Japan summit at the White House. Takaichi indicated a desire for a joint venture to stockpile crude oil procured from the U.S., and confirmed the importance of ensuring the safety of navigation in the Strait of Hormuz and a stable energy supply.
The White House has not yet released a readout of the summit. The attacks are occurring as Iran threatens “zero restraint” in response to the Israeli strike on the South Pars gas field, and is reportedly retaliating with attacks on energy infrastructure in Kuwait, and Qatar. Defense Secretary Pete Hegseth indicated Thursday would bring “the largest strike package yet” against Iran, while Joint Chiefs Chairman Dan Caine stated the military continues to attack deeper into Iranian territory.
The Pentagon is seeking an additional $200 billion to fund the escalating conflict, a figure Defense Secretary Hegseth suggested “could move,” stating, “it takes money to kill bad guys.” Americans are already feeling the impact of rising energy costs, with gasoline prices reaching $3.88 per gallon, according to AAA data. One analyst warned the conflict is “now hitting the plumbing of the global energy system.”
Treasury Secretary Scott is reportedly considering suspending sanctions on Iranian oil already at sea in an effort to curb rising energy prices. The Trump administration’s potential move comes amid a broader effort to de-escalate tensions and stabilize global markets.
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