Brent Oil Prices Soar Past USD90
International benchmark Brent crude climbed to $90.25 per barrel at 4:54 a.m. local time (1354 GMT) — a sharp 5.7% jump from Thursday's close of $85.41 — as military hostilities showed no sign of abating.
The ongoing US and Israeli strikes on Iran, now in their seventh day following Iran's retaliatory attacks on American regional bases and Israeli targets, have effectively choked off traffic through the Strait of Hormuz. The critical maritime corridor — through which approximately one-fifth of the world's oil and gas supplies flow — has been paralysed, while direct strikes on Iranian energy infrastructure have further curtailed production and exports.
Qatar Energy Minister and QatarEnergy Chief Executive Saad bin Sharia al-Kaabi issued a stark warning in an interview with media, cautioning that the conflict could "bring down the economies of the world."
On Wednesday, QatarEnergy declared force majeure for affected buyers after suspending production of liquefied natural gas (LNG) and related products — a direct consequence of an Iranian drone strike on its largest LNG facility.
"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," Kaabi said.
Even a swift end to hostilities would not bring immediate relief. Kaabi warned that Qatar would require "weeks to months" to resume normal LNG deliveries. He also cautioned that crude prices could rocket to $150 per barrel within two to three weeks should tanker transit through the Strait of Hormuz remain blocked — a chokepoint that typically handles roughly a fifth of all global oil and gas shipments.
The crisis is now cascading beyond energy markets. Shipping titan Maersk announced Friday it had temporarily suspended two major trade routes — the FM1 service linking the Far East to the Middle East, and the ME11 service connecting the Middle East to Europe — citing safety concerns for its vessels and crews.
The Danish shipping giant also confirmed the suspension of its regional Persian Gulf shuttle services until further notice. Most container carriers have effectively abandoned Hormuz transits since the US and Israeli military campaign against Iran began on February 28, diverting vessels on the far lengthier Cape of Good Hope route around the southern tip of Africa instead.
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