Attacks on oil and gas facilities across the Gulf rattle global markets, pushing energy prices higher and deepening concerns over prolonged supply shocks….
European natural gas prices surged sharply on Monday, climbing as much as 30 percent as escalating conflict in the Middle East rattled global energy markets and heightened fears of widespread supply disruptions.
The benchmark Dutch TTF Natural Gas Contract, widely regarded as Europe’s key gas price indicator, jumped to 69.50 euros during trading before easing slightly later in the session. Despite the dramatic rise, prices remain below the extreme levels recorded in 2022 following the outbreak of the Russian invasion of Ukraine.
The surge comes amid a fresh wave of attacks across the Gulf after Iran launched new strikes targeting energy infrastructure in the region on Monday. Among the facilities hit was a petroleum complex in Bahrain, further intensifying concerns over the stability of global energy supplies.
Authorities confirmed that Bahrain’s sprawling Al Ma’ameer Oil Facility was struck, triggering a fire and causing damage to parts of the complex. The country’s state-owned energy company, Bapco, responded by declaring force majeure across affected operations, citing the escalating regional conflict.
In a statement, the company said the decision was necessary because its operations had been impacted by the ongoing hostilities and the recent attack on its refinery infrastructure.
Bahrain is not alone. Energy producers in Qatar and Kuwait had earlier invoked similar force majeure clauses, signaling the growing strain on energy production across the Gulf.
The latest developments have fueled a broader rally in oil markets, as traders fear that the conflict could disrupt supplies from one of the world’s most critical energy-producing regions.
Financial markets across Asia reacted nervously to the escalating tensions. Major stock indexes across the region tumbled on Monday as investors rushed to reduce risk exposure while crude prices surged to their highest levels since the early stages of the Ukraine war in 2022.
The instability follows a series of missile and drone attacks launched by Iran across the Gulf in retaliation for strikes carried out by the United States and Israel against Iranian targets earlier this year.
The situation has also raised security concerns for diplomatic missions in the region. The United States Department of State issued a travel advisory ordering non-essential U.S. government personnel and their families to leave Saudi Arabia, citing escalating safety risks.
Last week, drones struck the United States Embassy Riyadh, while similar drone incidents were reported at American diplomatic facilities in Kuwait and the United Arab Emirates.
Meanwhile, Bahraini authorities said another overnight drone strike targeted the island of Sitra, leaving 32 people injured. According to the country’s health ministry, all those wounded were Bahraini nationals, including four individuals in serious condition.
Among the injured were a 17-year-old girl who sustained severe head and eye injuries, as well as a two-month-old baby.
Officials confirmed that the fire at the Al Ma’ameer facility has since been brought under control.
Elsewhere in the region, explosions were reported in Doha, the capital of Qatar, as multiple Gulf states reported fresh attacks.
Qatar’s defence ministry said its forces intercepted a missile targeting the country, while Saudi Arabia’s defence ministry reported that air defence systems had destroyed two waves of drones heading toward the Shaybah Oil Field in the kingdom’s southeast.
Authorities in the United Arab Emirates also said air defence systems responded to a missile threat, while Kuwait confirmed it was intercepting another round of missiles and drones after earlier attacks over the weekend.
Much of the region has borne the brunt of Iran’s retaliation since the United States and Israel launched a major aerial campaign against the Islamic Republic on February 28.
Since the escalation began, at least 21 people have been killed across Gulf countries, including 10 civilians and seven U.S. service members.
Iranian President Masoud Pezeshkian has warned that Tehran could expand its response if neighbouring countries allow their territories to be used for attacks against Iran.
With energy infrastructure increasingly caught in the crossfire, analysts warn that the conflict could trigger prolonged disruptions to global oil and gas supplies, keeping markets on edge and pushing energy prices even higher in the weeks ahead.
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