Oil spikes after strikes
Brent crude briefly touched $119 after missile strikes damaged a major Qatar LNG facility, then pulled back as Israel said it was helping to reopen the Strait of Hormuz — traders remain on edge about prolonged supply disruption. Global traders and the WTO warn high oil prices are already rippling through markets — spot cargoes and fuel prices have smashed records and Asian currencies are being shunned as risk appetite falls. (cnbc.com) (reuters.com) (reuters.com)
QatarEnergy CEO Saad al‑Kaabi told Reuters two LNG trains (S4 and S6) and one gas‑to‑liquids unit at Ras Laffan were damaged, taking about 12.8 million tonnes per year offline — roughly 17% of Qatar’s export capacity — with repairs expected to take three to five years. (channelnewsasia.com) Kaabi estimated the damage could cost roughly $20 billion in lost annual revenue, said the damaged units cost about $26 billion to build, and confirmed QatarEnergy has declared force majeure and warned long‑term contracts could be affected for up to five years. (cnbc.com) The affected LNG trains are joint ventures with Western majors — ExxonMobil holds about 34% of S4 and 30% of S6, and Shell is a partner in the damaged GTL plant — raising direct exposures for buyers in Italy, South Korea and China. (channelnewsasia.com) Traders are already reshuffling supplies: buyers are increasingly turning to U.S. LNG and crude cargoes as Asian and European buyers compete for scarce barrels, according to market flow reporting. (bloomberg.com) (money.usnews.com) Policy moves are being used to blunt the shock — the U.S. is releasing 172 million barrels from the Strategic Petroleum Reserve and Treasury Secretary Scott Bessent said Washington may “unsanction” about 140 million barrels of Iranian oil stuck on tankers to boost global flows. (energy.gov) (usnews.com) Physical markets show the disruption: LSEG data cited by market reports put Northwest European jet fuel near $220 per barrel and Dubai crude around $166.80, while Asia has been outbidding other regions for cargoes. (bluewaterhealthyliving.com) (money.usnews.com) The World Trade Organization warned a sustained run of high oil and LNG prices could slow global merchandise trade growth to about 1.4% in 2026 under a high‑price scenario, flagging broader trade and inflation risks. (money.usnews.com) U.S. and Middle East benchmark dynamics have diverged: Bloomberg flagged that U.S. crude has lagged Brent, widening spreads and creating arbitrage and storage strains for traders navigating the supply shock. (bloomberg.com)
