Qatar warns Gulf oil exports may halt if Iran war drags on
Qatar expects all Gulf energy producers to shut down exports within weeks if the conflict with Iran continues and pushes oil prices to $150 per barrel, the country’s Energy Minister Saad al-Kaabi said.
“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 force majeure,” Kaabi said in the interview with the Financial Times, News.Az reports.
Force majeure refers to unforeseen circumstances that prevent a party from fulfilling contractual obligations.
“If this war continues for a few weeks, GDP growth around the world will be impacted,” Kaabi said. “Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”
He added that even if the conflict ended immediately, it would take Qatar “weeks to months” to return to normal delivery cycles.
Analysts and economists have also warned about the broader economic impact of the conflict.
Qatar halted production of liquefied natural gas on Monday as Iran continued strikes against Gulf countries in retaliation for Israeli and U.S. attacks.
The country’s LNG output accounts for about 20% of global supply and plays a key role in balancing demand in both Asian and European energy markets.
Kaabi said crude oil prices could reach $150 per barrel within two to three weeks if ships and tankers are unable to pass through the Strait of Hormuz, the world’s most critical oil export route linking major Gulf producers with the Gulf of Oman and the Arabian Sea.
Qatar halted production of liquefied natural gas on Monday as Iran continued strikes against Gulf countries in retaliation for Israeli and U.S. attacks.
The country’s LNG output accounts for about 20% of global supply and plays a key role in balancing demand in both Asian and European energy markets.
News.Az
By Nijat Babayev
