Oil prices surge towards $150 as Qatar warns of Gulf export shutdown

Qatar’s Energy Minister gave a stark warning stating that the escalated tensions with Iran could force all Gulf energy producers to halt exports within a week.

He warned of an increase in the price of crude oil to $150 per barrel as oil prices have skyrocketed to 22-month highs on Friday, March 6.

West Texas Intermediate crude raised 4% ($84.12) while Brent experienced 2% increase ($87.12).

This marks the steepest weekly gains in the market since Russia’s 2022 invasion of Ukraine.

Following the blockade of the Strait of Hormuz, WTI alone soared 25% this week.

While speaking with the Financial Times, Qatari Energy Minister Saad al-Kaabi warned that all Gulf exporters are in a state of force majeure if the war continues further.

Qatar, for its part, had already suspended its liquefied natural gas production on Monday, which accounts for 20% of the world’s supply, after Iran retaliated against Israeli and US attacks by targeting Gulf countries.

Kaabi said: “If this war continues for a few weeks, GDP growth around the world will be impacted.”

“Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that can’t supple,” he added.

Crude oil prices may surge to as high as $150 in two to three weeks if tankers cannot pass through the strait, said Kaabi, who also forecasts that prices for natural gas may rise to $40 for every million British thermal units.