Oil and gas prices surged Thursday after Iran launched a retaliatory strike on a major LNG facility in Qatar, intensifying fears of supply disruptions. Crude jumped toward $120 a barrel, with Brent briefly rising above $119 before easing to around $112, while WTI climbed near $100 and then pulled back slightly.
European natural gas futures spiked as much as 35% before settling lower, and US gas prices also moved higher.
The escalation followed Israeli strikes on Iran’s South Pars gas field, one of the world’s largest, prompting Iran to target Ras Laffan—home to a key LNG export hub that accounts for a significant share of global supply. The attacks raised concerns about longer-term damage to energy infrastructure and delays in restoring production.
Markets reacted quickly. US stocks fell again, extending losses after the Dow hit its lowest level of 2026 a day earlier, while energy markets priced in higher risk premiums.
Analysts warned that the conflict may be shifting from short-term disruptions to more lasting damage, which could keep oil and gas prices elevated if tensions continue to escalate.