Oil Prices Surge Past $110 per Barrel Following Gas Field Attack

Oil prices surged above $110 per barrel after reports emerged of an airstrike hitting a facility on the world’s largest natural gas field, according to Iranian media.

Brent crude briefly reached $112 a barrel during early Thursday trading in Asia, marking a rise of over 5% from Tuesday levels, before retreating slightly. UK gas prices also jumped, with the benchmark rising 6% to 143.53p per therm before stabilizing around 140p.

The spike followed reports that Iran’s petrochemical complex on the South Pars gas field had been struck. Hours later, Qatar confirmed “extensive damage” at its Ras Laffan industrial site, part of the same gas field known locally as North Dome. Qatar, which produces around a fifth of the world’s liquefied natural gas, had already suspended production earlier this month due to ongoing regional tensions.

Iran’s oil ministry stated that a fire at the petrochemical complex was under control. Meanwhile, the Iranian military warned of “decisive action” in response to attacks on the country’s energy infrastructure, saying strikes against fuel, gas, and energy facilities of the aggressor nations would be considered legitimate retaliation.

Qatari authorities confirmed that the fire at Ras Laffan had been brought under control, with no injuries reported, but emphasized the strike as a serious threat to global energy security.

Despite the recent surge, both oil and gas prices remain below the peaks reached earlier in March, when Brent crude hit $116.78 a barrel on March 9 and UK gas reached 162.55p per therm on March 3.

The developments highlight continued volatility in global energy markets amid escalating regional tensions affecting critical energy infrastructure.