As the Middle East conflict intensified, severe warnings fueled concerns about additional interruptions to global energy flows, which put pressure on the oil market on Friday. The US benchmark West Texas Intermediate (WTI) crude had increased by more than 6% to over $86 a barrel by early afternoon in Europe. Brent crude, a global benchmark, increased by over 4% to trade above $89 per barrel.
Qatar’s energy minister, Saad al-Kaabi, issued a warning earlier Friday that Gulf exporters may have to halt output because of the conflict and that it will take “weeks to months” to resume exports following the Iranian drone strike.
He warned that the Middle East conflict might “bring down the economies of the world” in an interview with the Financial Times, stating that all Gulf energy exporters would stop output within days and send oil prices to $150 per barrel. An incident that resulted in the closure of a US-run oil field in Iraq’s autonomous Kurdistan region also rocked markets.
Explosions were reported Friday close to Erbil airport, and an attack prompted the closure of an oil field run by US business HKN Energy, as security tensions in northern Iraq continue to increase. Production at the Sarsang oil field in Dohuk province has been suspended since the attack, according to the natural resources ministry of the Kurdistan regional government.
Two drones were used to carry out the strike the day before, a security source told AFP.
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