The threat of stopping oil and gas supplies from the Gulf could have a major impact on the world economy
The ongoing war in the Middle East has increased the risk of disruptions to oil and gas supplies from Gulf countries. Qatar's Energy Minister, Saad al-Kaabi, has warned that if the situation worsens, crude oil prices could reach $150 per barrel.
If the ongoing war in the Middle East continues for a few more weeks, it could have devastating effects on the global economy.
Qatar's Energy Minister, Saad al-Kaabi, has warned that oil and gas supplies from Gulf countries could be disrupted and crude oil prices could reach $150 per barrel.
The world economy could be affected
The energy minister said that if the war continues for a long time, Gulf energy producers may have to declare force majeure. This means that companies can suspend supplies due to extraordinary circumstances.
He said that if this situation continues, the global economy will be severely affected. Energy prices will rise and economic growth in many countries could slow.
Danger of stopping oil and gas supply
Gulf countries supply not only oil and gas but also large quantities of raw materials needed for petrochemicals and fertilizers. If exports from here are halted, many industries could be affected. Factory production could even come to a halt.
Drone attack on Qatar's LNG plant
Qatar, one of the world's largest LNG producers, has also suffered the effects of the conflict. Operations at Qatar's largest LNG plant, Ras Laffan, were halted after an Iranian drone attack. Officials say the damage is still being assessed, and the repair process is unclear.
Threat to the Strait of Hormuz
Experts say that disruption of shipping in the Strait of Hormuz could cause significant disruption to the global energy market.
Approximately 20% of the world's oil and gas supplies pass through this sea route. According to the Energy Minister, if the route remains closed for a few weeks, crude oil prices could reach $150 per barrel within 23 weeks.
LNG expansion plan also affected
The war could also impact Qatar's major gas project. The approximately $30 billion project aims to significantly increase the country's LNG production capacity by 2027.
However, due to security concerns, some production has been halted and approximately 9,000 employees have been evacuated. Officials say production will resume only after the situation returns to normal.
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Iran-Israel War