Qatar’s energy minister Saad al-Kaabi has said Gulf energy exporters could be forced to shut down exports within weeks if the conflict involving Iran, the United States and Israel continues, potentially pushing oil prices to $150 a barrel.
In an interview with the Financial Times, Kaabi said Gulf energy exporters may be forced to halt production within days if hostilities persist, warning that prolonged disruption could significantly affect global energy markets and “bring down the economies of the world.”
Qatar, the world’s second-largest producer of liquefied natural gas (LNG), declared force majeure this week after an Iranian drone strike hit its Ras Laffan LNG facility. The plant is central to the country’s exports, which account for about 20 per cent of global LNG supply.
Kaabi said even if fighting stopped immediately, it could take “weeks to months” for Qatar to return to normal delivery cycles as authorities assess damage and resolve logistical challenges. “Everybody that has not called for force majeure we expect will do so in the next few days that this continues. All exporters in the Gulf region will have to call force majeure,” he told the Financial Times.
The minister warned the impact could extend beyond the energy sector. “This will bring down the economies of the world,” Kaabi said. “If this war continues for a few weeks, GDP growth around the world will be impacted.”
Brent crude rose 2.5 per cent to $87.6 a barrel on Friday following the comments. Kaabi also said natural gas prices could rise to about $40 per million British thermal units. Shipping through the Strait of Hormuz—a key route through which roughly a fifth of the world’s oil and gas passes—has slowed sharply since the conflict escalated. At least 10 ships have been hit and insurance premiums have surged.
US President Donald Trump has said the US Navy would escort vessels through the strait, but Kaabi warned that the route would remain unsafe while hostilities continue.“The way that we are seeing the attacks, bringing ships into the strait… it’s too dangerous,” he said. Kaabi added that Qatar would resume LNG production only after there is a complete halt to hostilities.
