Qatar Warns of Potential Disruption to Gulf Energy Exports Within Weeks

Qatar’s Energy Minister Predicts Global Economic Impact from Ongoing Conflict

Qatar’s energy minister, Saad al-Kaabi, has stated that global economies could be affected if the war on Iran continues for an extended period. In an interview with The Financial Times, al-Kaabi warned that exports from the Gulf region could cease “within weeks” due to the escalating conflict.

Al-Kaabi’s comments suggest that the ongoing war would lead to increased energy prices worldwide, resulting in shortages of certain products and a chain reaction of factory shutdowns. He also mentioned that Qatar’s liquefied natural gas (LNG) production, which accounts for approximately 20% of global supply, could be impacted.

Qatar has already halted LNG production following Iranian missile attacks on the country and its Gulf neighbors. The Iranian strikes have targeted energy infrastructure, causing a surge in gas prices and prompting concerns globally. Al-Kaabi stated that exporters in the Gulf region would likely declare force majeure, citing extraordinary events as an excuse for non-delivery.

Energy expert Thijs Van de Graaf noted that tanker traffic through the Strait of Hormuz has decreased significantly due to the war. He warned that producers in the Gulf region relying on this export route may need to shut down production, which could have long-term effects on oil supplies.

The conflict shows no signs of abating, with senior US officials vowing to continue military action against Iran. Meanwhile, Iranian President Masoud Pezeshkian has defended his country’s actions, stating that they will not hesitate to defend their nation’s dignity and sovereignty.

Source: Al Jazeera