Oil and natural gas prices are up sharply as Iran continues to strike energy infrastructure in the Middle East, including refineries and shipping terminals.
Qatar has reported that Iranian missile strikes badly damaged a key liquefied natural gas (LNG) export facility.
As a result, Brent crude oil, the international standard, rose 7% to $119 U.S. a barrel, before paring some of those gains.
West Texas Intermediate (WTI) crude oil briefly touched $100 U.S. a barrel before pulling back.
At the same time, natural gas prices jumped. A European benchmark for natural gas trading increased more than 16% to 63.42 euros ($72.75 U.S.) per megawatt-hour.
U.S. natural gas prices climbed 3% higher, trading at $3.15 U.S. per million British thermal units.
The sharp uptick in energy prices is roiling financial markets around the world, with European stock indices down 2% on March 19. All U.S. indices are in the red premarket.
Iranian missiles reportedly inflicted major damage on Ras Laffan Industrial City, the world’s largest LNG export facility, according to the government in Qatar.
Saudi Arabia and the United Arab Emirates remain on alert for similar attacks after Israel struck an Iranian natural gas processing facility.
Analysts are warning that the escalating strikes on Middle East energy infrastructure risk deepening the supply shock triggered by the Iran war.
Tanker traffic through the Strait of Hormuz that typically handles 20% of the world’s oil supplies is largely blocked, helping to push crude prices higher.
Central banks around the world, including in the U.S. and Canada, are warning of a sharp increase in inflation if energy prices continue to rise at their current pace.
