Global oil prices soared while U.S. stock futures tumbled Monday as markets reacted to the escalating U.S.-Israel conflict with Iran and Tehran’s retaliatory strikes on major oil-producing Middle Eastern states allied with Washington. President Donald Trump warned the conflict could last up to five weeks.
Attacks on Key Energy Infrastructure
Saudi Arabia’s Ras Tanura oil refinery, one of the world’s largest, came under an aerial drone attack Monday. Authorities intercepted the incoming drones, but debris caused limited damage. Thick black smoke was reported rising from the facility, prompting a precautionary shutdown, according to the Saudi Energy Ministry.
In Oman, a Marshall Islands-flagged oil tanker was struck by a drone boat carrying explosives off the coast of Muscat, killing an Indian crew member. The unmanned vessel exploded and triggered a fire onboard, according to Oman’s state news agency.
QatarEnergy announced a full halt to its liquefied natural gas production amid the conflict, citing attacks on its facilities. As the world’s largest LNG producer, the suspension threatens up to 20% of global output, according to Bloomberg analyst Javier Blas.
Disrupted Shipping and Rising Fuel Costs
The conflict has also disrupted shipping traffic through the strategic Strait of Hormuz. The U.K. Maritime Trade Operations reported “significant military activity,” with projectiles striking vessels near Sharjah, UAE, and the Port of Bahrain. Some tanker crossings continue under AIS deactivation, particularly for product tankers, Blas noted.
Rising crude prices are expected to push U.S. gasoline prices above $3 per gallon this week. AAA reported a national average of $2.997 per gallon Monday, up from $2.938 last week, with Petroleum Analyst Patrick de Haan warning further increases are likely.
The widening conflict has not only heightened geopolitical tensions but also sent global energy markets into volatility, underscoring the vulnerability of oil supply chains in the Middle East.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo
- Carlo Juancho Funtanilla
- Carlo Juancho Funtanilla
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