Brent Crude Hits $119 Amid Escalating Middle East Conflict... European Gas Prices Surge

As the conflict between Israel and Iran spreads across the Middle East's energy infrastructure, international crude oil and natural gas prices have surged sharply. Concerns that key production facilities may be impacted for an extended period are fueling further market instability.

According to Bloomberg and other sources on March 19 (local time), May Brent crude oil futures on the London ICE Futures Exchange soared more than 10% in early trading, reaching as high as $119.13 per barrel. Although the gains were partially pared later in the session, prices remained more than 6% higher overall.

On the 14th (local time), in Fujairah, United Arab Emirates (UAE), debris from an Iranian drone struck an oil facility, causing smoke and fire. Photo by AP Yonhap News

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April West Texas Intermediate (WTI) crude oil futures in the United States also surpassed $100 per barrel during intraday trading before retreating slightly to the high $90s. European diesel futures prices also soared to as much as $190 per barrel during the session. The price gap between WTI and Brent crude has reportedly widened to its largest level in 11 years.

The Dutch TTF futures contract, which serves as the European natural gas benchmark, spiked by 35% during intraday trading, surpassing 73 euros per megawatt hour (MWh). Although some of the gains were trimmed later, prices remain double the levels seen before the conflict began. UK gas prices also jumped by as much as 23%, more than doubling compared to pre-war levels.

The surge in energy prices stems from both sides launching consecutive attacks on major production and refining facilities. Israel carried out airstrikes on Iran’s largest gas field, South Pars, and the Assaluyeh refining facility, while Iran reportedly inflicted significant damage by attacking Qatar’s Ras Laffan LNG production facility.

On the same day, a refinery and oil export terminal in Saudi Arabia’s Yanbu region were temporarily shut down following a drone attack, and a fire broke out at a refinery in Kuwait, indicating that the clashes are ongoing. Experts note that this situation could cause structural shocks to the LNG market.

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