Oil prices top $90 as Middle East supply fears persist

ANKARA

Brent futures prices topped $90 on Friday, reaching their highest level since April 2024 as escalating conflict in the Middle East heightened concerns over disruptions to global energy supplies.

International benchmark Brent crude traded at $90.25 per barrel at 4.54 am local time (1354 GMT), up around 5.7% from the previous close of $85.41.

The attacks by the United States and Israel on Iran, and Iran's retaliatory strikes targeting US bases in the region and Israel, entered their seventh day.

The escalating conflict has effectively halted traffic in the Strait of Hormuz, a key route for global energy trade, while attacks on Iran's energy facilities have disrupted production and exports, driving prices sharply higher.

Qatar Energy Minister and QatarEnergy Chief Executive Saad bin Sharia al-Kaabi said in an interview with Financial Times that war in the Middle East could "bring down the economies of the world."

On Wednesday, QatarEnergy declared force majeure to its affected buyers after halting production of liquefied natural gas (LNG) and related products, the company announced.

"Everybody that has not called for force majeure we expect will do so in the next few days that this continues. All exporters in the Gulf region will have to call force majeure," Kaabi said.

Even if the war ended immediately, Qatar would need "weeks to months" to restore normal LNG deliveries after an Iranian drone strike on its largest LNG facility, he said.

He said crude prices could surge to $150 a barrel within two to three weeks if tankers and other commercial vessels were unable to transit the Strait of Hormuz, a key maritime chokepoint that carries about a fifth of global oil and gas supplies.

Meanwhile, shipping giant Maersk temporarily halted two major shipping services linking the Middle East with Asia and Europe on Friday as the ongoing war involving Iran continues to disrupt global supply chains.

The Danish company said in a statement that it suspended the FM1 service connecting the Far East to the Middle East and the ME11 service linking the Middle East to Europe, citing safety concerns for its vessels and crews.

The move came as the US- and Israeli-led military campaign against Iran entered its seventh day, triggering severe disruptions to maritime traffic through the Strait of Hormuz. The strait, which connects the Persian Gulf with the Gulf of Oman, normally carries around 20% of global oil and gas shipments.

Container shipping companies have largely halted transits through the waterway since US and Israeli strikes on Iran began on Feb. 28, rerouting vessels around the Cape of Good Hope at the southern tip of Africa instead.

Maersk also said its regional shuttle services operating within the Persian Gulf have been suspended until further notice.