Qatar Energy Minister Warns Oil Could Hit $150 Amid Middle East Tensions

Qatar’s Energy Minister, Saad al-Kaabi, has warned that global oil prices could surge to $150 per barrel within weeks as tensions escalate in the Middle East, raising concerns over potential shutdowns of Gulf energy exports.

Kaabi made the forecast on Friday during an interview with the Financial Times, citing the ongoing United States-Israeli conflict with Iran.

The minister said that even if the war ended immediately, it would still take Qatar “weeks to months” to return to a normal cycle of deliveries following an Iranian drone strike at its largest liquefied natural gas (LNG) plant.

He predicted that crude prices could skyrocket if tankers and other merchant vessels were unable to pass through the Strait of Hormuz, a crucial maritime trade route through which a fifth of the world’s oil and gas passes.

“Everybody that has not called for force majeure we expect will do so in the next few days if this continues. All exporters in the Gulf region will have to call force majeure. If they don’t, they are at some point going to pay the liability for that legally, and that’s their choice.

This will bring down the economies of the world. If this war continues for a few weeks, GDP growth around the world will be impacted. Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply,” Kaabi said.

He added: “We don’t yet know the extent of the damage, as it is currently still being assessed. It is not clear yet how long it will take to repair.”

Earlier this week, US President Donald Trump said the US Navy would escort ships through the Strait of Hormuz and offered additional insurance to shipping companies. However, Kaabi noted that it would still be unsafe for vessels to navigate the strait if the conflict continues.

“The way that we are seeing the attacks, bringing ships into the strait. It’s too dangerous. It’s too close to the shore to bring ships in. It will be difficult to convince ships to go in. Most of the ship owners will see that they become a bigger target because they’re [Iran] targeting the military ships.

In addition to energy, there will be a halt on all other trade in between the [Gulf] and the world, which will have a significant effect on the economies of the [Gulf] and all the trading partners around the world,” he said.

Qatar, the world’s second-largest LNG producer, was forced to declare force majeure this week after the strike at its Ras Laffan plant. The energy firm announced it was shutting downstream production just a day after halting LNG output due to the escalating Middle East tensions.

The US-Israeli war against Iran has disrupted the oil-rich region, with Brent crude rising 2.5% to $87.6 per barrel on Friday morning in Europe, marking the highest level since the conflict began.

The developments are already reverberating globally, including in Nigeria, where Premium Motor Spirit (PMS) pump prices have recently surged.