Brent crude oil prices surged over five percent on Thursday following renewed concerns over Middle Eastern energy supplies, triggered by Iranian threats to target Gulf infrastructure in retaliation for an attack on its South Pars gas field.
The international benchmark rose to $112.84 a barrel before settling at $108 as of 7:48 AM West Africa Time. U.S. West Texas Intermediate crude also increased, climbing 2.5 percent to $98.69 during Asian trading. The volatility reflects heightened geopolitical tensions in a region critical to global energy supply chains.
The price jump follows a series of attacks. Iran launched strikes on Gulf energy sites, including Qatar’s Ras Laffan liquefied natural gas (LNG) facility, which sustained significant damage. These actions were in response to an Israeli strike on Iran’s South Pars gas field, part of the world’s largest natural gas reserve.
U.S. President Donald Trump intervened, threatening to “destroy” the entire South Pars field if Iran continues its attacks on Qatari energy infrastructure. In a social media post, Trump stated the United States had no prior knowledge of Israel’s initial strike on South Pars and vowed “NO MORE ATTACKS WILL BE MADE BY ISRAEL” on the site, contingent on Tehran halting its own strikes. He warned that failure to comply would result in the U.S. “massively blow up the entirety of the South Pars Gas Field.”
The conflict has amplified fears that the ongoing war, now nearly three weeks old, could cause prolonged disruption to global energy flows. With the Middle East accounting for a substantial portion of world oil exports, any sustained threat to key production or export facilities typically drives market anxiety and price increases.
The crisis is reverberating globally, particularly in nations heavily dependent on imported fuel. In the South Pacific, Samoa and Tonga—where diesel generates about two-thirds of Samoa’s power—have appealed for international assistance, citing risks of shortages and soaring costs. Similarly, in Nigeria, the cost of imported crude has contributed to a dramatic rise in premium motor spirit (PMS) prices, which have jumped from below 200 naira per litre in 2023 to over 1,000 naira. This surge exacerbates national inflation and increases the cost of food and goods.
The situation underscores the fragility of global energy markets to geopolitical flashpoints. While immediate price reactions may fluctuate, the potential for further escalation keeps supply-side risks elevated, with direct consequences for inflation, transportation costs, and economic stability in import-dependent countries worldwide. Market vigilance remains high as diplomatic efforts appear strained.
