Oil prices jumped sharply on Thursday as escalating attacks on energy infrastructure across the Middle East rattled global markets and raised fears of prolonged supply disruptions. Brent crude, the international benchmark, climbed above $115 per barrel, reaching its highest level in over a week.
Escalation Hits Key Energy Hubs
The surge followed a wave of retaliatory strikes by Iran on energy facilities across the region. The attacks came in response to an earlier Israeli strike on South Pars, the world’s largest natural gas field, located in the Persian Gulf.
Iranian strikes targeted infrastructure in Qatar, Saudi Arabia, and the United Arab Emirates. In Kuwait, two state-owned refineries were hit by drones, triggering fires. QatarEnergy said one of the attacks destroyed about 17% of the country’s liquefied natural gas capacity, with recovery expected to take between three and five years.
As a result, natural gas prices in Europe spiked. Futures jumped as much as 35% earlier in the day before settling near a 14% increase by midday.
The market reaction was immediate. Brent futures rose more than 6%, trading near $114.45 per barrel in early hours, after briefly touching $115.10. U.S. West Texas Intermediate crude also gained, climbing to around $96, after earlier approaching the $100 mark.
The widening gap between Brent and WTI reflects ongoing releases from U.S. strategic reserves and higher transportation costs, even as global supply concerns intensify.
“The escalation in the Middle East, combined with direct attacks on oil infrastructure, points to a prolonged disruption in supply,” said Priyanka Sachdeva, an analyst at Phillip Nova, in a note to clients.
Financial markets reacted negatively. Futures tied to the Dow Jones, S&P 500, and Nasdaq all declined in early trading. European markets also fell sharply, with Germany’s DAX and the UK’s FTSE 100 both down more than 2%. In Asia, major indexes in Shanghai, Hong Kong, and Tokyo posted significant losses.
At the same time, diplomatic tensions deepened. Officials from 12 Arab and Islamic nations condemned Iran’s attacks during a meeting in Riyadh, calling for an immediate halt to hostilities and urging respect for international law.
Meanwhile, U.S. President Donald Trump said Washington had no involvement in the Israeli strike on South Pars and had no prior knowledge of the operation. He also stated that Israel should avoid further attacks on the site.
According to Reuters, the U.S. government is now considering additional military deployments to the region, including options to secure oil shipping routes through the Strait of Hormuz. Sources cited by the agency said discussions also include the possibility of deploying ground forces near key export infrastructure such as Iran’s Kharg Island, which handles the majority of the country’s oil shipments.
The latest developments highlight growing risks to one of the world’s most critical energy corridors. They also expose vulnerabilities in regional defense systems and raise questions about coordination between the United States and Israel as the conflict intensifies.