Iran strikes hit Qatar LNG hub, spiking oil, gas
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- Brent crude rose to just over $108 a barrel, after reaching $119 earlier in the day, following Iranian strikes on Middle Eastern energy infrastructure.
- UK gas prices jumped 11.3% to 154.8p per therm, after peaking near 183p, as the strike hit Qatar's Ras Laffan LNG export facility.
- FTSE 100 closed down 2.4% at 10,049, while Japan’s Nikkei fell 3.4% and US indexes slipped modestly, reflecting investor concern over a prolonged conflict.
- Two‑year gilts posted their biggest daily yield rise since Liz Truss’s 2022 mini‑budget, as bond markets reacted to inflation fears from higher energy prices.
- Ras Laffan suffered “extensive damage” from Iran’s retaliation, and QatarEnergy says repairs will cut LNG output by 12.8 million tons for three to five years.
- WTO warned that sustained oil and gas price spikes could shrink global trade growth to 1.4% and threaten fertilizer supplies, especially for Thailand, India and Brazil.
Why it matters: Higher energy prices raise inflation pressures, making mortgages costlier as UK gilt yields surge, while vulnerable economies risk food‑price spikes from disrupted fertilizer supplies. The WTO’s trade‑growth warning underscores the broader economic strain beyond market losses, and U.S. officials consider sanction tweaks to temper oil costs.
