Crude futures ended significantly higher after Israeli and U.S. strikes on Iranian targets, and Tehran’s retaliation, led to shutdowns of oil and gas facilities across parts of the Middle East and disrupted shipping through the vital Strait of Hormuz.
U.S. crude settled up $4.21, or 6.28%, at $71.23 a barrel. Brent crude finished at $77.74 per barrel, gaining $4.87, or 6.68%.
Qatar halted liquefied natural gas production on Monday after Iranian drone strikes hit facilities at the Ras Laffan industrial complex, escalating energy supply risks across the Gulf. Qatar accounts for roughly 20% of global LNG supply, and state-owned QatarEnergy was preparing to declare force majeure on shipments.
The widening U.S.–Israeli conflict with Iran triggered precautionary shutdowns across the region. Saudi Aramco suspended operations at its 550,000 barrels-per-day Ras Tanura refinery after drones were intercepted nearby, though officials said domestic fuel supplies were unaffected. In Iraqi Kurdistan, producers halted about 200,000 bpd of output exported via Turkey as a precaution. Offshore Israel, Chevron temporarily shut the Leviathan gas field, while Energean suspended output at smaller fields.
Oil prices jumped as much as 13% intraday to above $82 per barrel — the highest since January 2025 — amid near paralysis of shipping through the Strait of Hormuz, which handles roughly one-fifth of global oil supply. European gas prices surged 46% at the Dutch TTF hub.
Explosions were also reported at Iran’s Kharg Island export terminal, which processes about 90% of the country’s crude exports, though the extent of damage remains unclear. Iran produces roughly 3.3 million barrels per day of crude plus 1.3 million bpd of condensate, accounting for about 4.5% of global supply.
With multiple supply hubs under threat, markets are bracing for further volatility as the conflict deepens and energy infrastructure increasingly becomes a direct target.