Israel-Iran Military Conflict Triggers Emergency in Middle East Energy Market

The military conflict between Israel and Iran is spreading throughout the Middle East, causing a sharp rise in international energy prices. Israel’s attack damaged Iran’s major gas fields, prompting Iran to retaliate by attacking Qatar’s key liquefied natural gas production facilities.

The full-scale military conflict began with Israel’s airstrikes on Iran’s largest gas field, South Pars, and the Asaluyeh gas refining facilities in southwestern Iran. In response, Iran attacked Qatar’s Ras Laffan gas facilities, causing significant damage. Such attacks threaten energy infrastructure across the Middle East and have a huge impact on the international energy market.

On the same day, Brent crude oil futures prices on the London Intercontinental Exchange surged sharply. The price per barrel broke through $119, approaching the highest levels since 2022. U.S. West Texas Intermediate crude also experienced a rapid increase above $100, followed by a slight price correction. Amid international tensions, European natural gas prices also rose significantly.

These energy price surges are closely related to the instability in the Middle East. Due to conflicts with Iran, major energy facilities in countries like Saudi Arabia and Qatar have been directly targeted, causing market turmoil. If such military conflicts persist long-term, supply and demand imbalances in energy could worsen further.

Energy experts are concerned that the situation may become prolonged and predict that the repair of major energy facilities will be difficult. Even after the war ends, normal operations may take a considerable amount of time, potentially causing lasting impacts on the international energy market. The volatility in energy markets could trigger widespread ripple effects on the global economy, making it essential to closely monitor the situation.