Qatar warns Gulf energy exports at risk if Iran conflict persists

The Qatari energy minister has warned that ongoing conflict involving Iran could lead to a complete halt of energy exports from Gulf countries within weeks, according to reports. Saad al-Kaabi, Qatar's Energy Minister, stated that if the hostilities continue, all energy exporters in the Gulf region may be forced to declare force majeure, effectively suspending their export commitments.

Kaabi's remarks, published in an interview, highlighted the severe impact the conflict could have on the global energy market. He indicated that crude oil prices could reach as high as $150 per barrel if the situation persists. According to the minister, Qatar halted its liquefied natural gas (LNG) production on Monday as Iran continued to launch strikes against Gulf countries in response to actions by Israel and the United States.

Qatar is a significant player in the global LNG market, accounting for approximately 20 percent of worldwide supply. The minister emphasized that the country's LNG production is crucial for meeting the energy demands of both Asian and European markets. Kaabi warned that if the conflict endures for several weeks, it could have a negative effect on global GDP growth. He also noted that energy prices are likely to rise, shortages of certain products may occur, and a chain reaction could disrupt factory operations worldwide.

“Everybody who has not called for force majeure we expect will do so in the next few days if this continues. All exporters in the Gulf region will have to call a force majeure,” Kaabi said, according to reports.