Oil and natural gas prices soar as Iran attacks Gulf energy facilities.
Brent crude nears $114
[March 19, 2026] By
ELAINE KURTENBACH and DAVID MCHUGH
BANGKOK (AP) — Global oil and natural gas prices soared Thursday after
Iran attacked a key natural gas facility in Qatar that can supply
one-fifth of the worlds gas as well as two oil refineries in Kuwait.
The attacks added to fears the energy crisis triggered by the closure of
the Strait of Hormuz to tanker traffic may be longer and more extensive
than feared, with lasting damage to oil and gas production.
Brent crude, the international benchmark, rose to $116.38 per barrel, up
from under $73 per barrel on the eve of the war.
The European TTF benchmark for natural gas prices traded 24% higher on
Thursday.
The Iranian attack hit the Ras Laffan terminal for shipping out
liquefied natural gas in Qatar. Qatar normally supplies some 20% of the
world’s consumption of LNG, which can be carried by ship. The facility
shut down after a drone attack. The closure of the Strait of Hormuz to
most tanker traffic also left the gas with nowhere to go.
If the disruptions from Iran’s attacks on its Gulf Arab neighbors’
energy infrastructure keep oil and gas prices high for long, they could
create a debilitating wave of inflation for the global economy.
U.S. benchmark crude oil gained 1.1% to $96.45 a barrel early Thursday,
while the Henry Hub future contract, the benchmark for U.S. natural gas,
gained 5.1%.
As oil and gas prices spiked, world shares retreated and U.S. futures
edged 0.2% lower.
Germany's DAX lost 2.1% to 23,015.40 and the CAC 40 in Paris fell 1.5%
to 7,848.88. Britain's FTSE 100 shed 1.7% to 10,134.02.
In Asian share trading, Tokyo’s Nikkei 225 fell 3.4% to 53,372.53 as the
Bank of Japan opted to keep its benchmark interest rate on hold at
0.75%, citing the war with Iran as one factor.
In its monetary policy statement the BOJ said that “in the wake of
increased tension in the Middle East, global financial and capital
markets have been volatile and crude oil prices have risen
significantly; future developments warrant attention.”
Higher oil prices are a heavy burden for Japan, which like South Korea
and Taiwan depends on imports of most raw materials for industries that
rely heavily on oil and its derivatives.
The Kospi in Seoul lost 2.7% to 5,763.22.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI), top center, and the foreign exchange rate
between U.S. dollar and South Korean won, top center left, at the
foreign exchange dealing room of the Hana Bank headquarters in
Seoul, South Korea, Thursday, March 19, 2026. (AP Photo/Ahn Young-joon)
 In Hong Kong, the Hang Seng slipped
2% to 25,500.58, while the Shanghai Composite index shed 1.4% to
4,006.55.
Australia's S&P/ASX 200 lost 1.7% to 8,497.80 and Taiwan's Taiex
fell 1.9%. In India, which has also suffered from shocks to supplies
of oil and gas, the Sensex lost 2.7%.
“The combination of higher oil, rising U.S. yields, and a stronger
dollar is acting as a macro wrecking ball across Asian assets and
currencies,” Stephen Innes of SPI Asset Management said in a
commentary.
On Wednesday, the S&P 500 fell 1.4%, flipping to a loss for the week
so far. The Dow Jones Industrial Average dropped 1.6% and the Nasdaq
composite slid 1.5%.
The losses deepened after the Fed decided to keep its main interest
rate steady, instead of resuming cuts meant to give the jobs market
and economy a boost.
“We just don’t know,” Fed chair Jerome Powell said about what will
happen with oil prices, along with how long President Donald Trump’s
tariffs will take to work their way fully through the system.
A report released Wednesday morning showed inflation pressures were
already building before the war began. It said inflation at the U.S.
wholesale level unexpectedly accelerated last month to 3.4%.
In other dealings early Thursday, The U.S. dollar fell to 159.10
Japanese yen from 159.88 yen. The euro rose to $1.1463 from $1.1453.
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McHugh contributed from Frankfurt, Germany.
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