Middle East Crisis: Oil, Gas, Petrol Prices Surge as Energy Installations Come Under Attack
- Natural gas prices surged nearly 50% after QatarEnergy suspended LNG production following reported military attacks
- Iran warned vessels against passing through the key waterway that handles about 20% of global oil and gas shipments
- Major European stock markets and UK banking shares declined over inflation concerns, while the Nigerian market is also reacting
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Global energy prices rose sharply on Monday, March 2, 2026, after military strikes in the Middle East disrupted oil and gas facilities and heightened concerns over supplies through the Strait of Hormuz.
Source: UGC
According to a report by the BBC, natural gas prices surged by nearly 50% after QatarEnergy halted production following what it described as “military attacks” on its facilities.
The development comes amid escalating tensions triggered by US-Israeli strikes in Iran and Tehran’s retaliatory actions across the region.
Iran vs US/Israel war: Crude oil price surges
Brent crude, the global oil benchmark, climbed by about 10% to trade above $82 per barrel on Monday.
The spike followed reports that at least three vessels were attacked near the Strait of Hormuz over the weekend.
Iran subsequently warned ships against passing through the strategic channel, which accounts for roughly 20% of global oil and gas shipments.
Analysts said any prolonged disruption to traffic through the route could place further pressure on energy prices.
However, after the initial rally, Brent crude eased to around $79 per barrel, while US-traded oil rose by approximately 7.6% to $72.20.
In the United Kingdom, the FTSE 100 fell by 1%, with the parent company of British Airways among the major decliners following airspace disruptions in the Middle East.
Banking stocks, including Barclays, Standard Chartered and HSBC, also recorded losses amid concerns that higher energy costs could fuel inflation and limit the scope for interest rate cuts by central banks.
Across continental Europe, markets posted steeper declines. France’s CAC 40 dropped 1.8%, while Germany’s DAX fell 2.1% in early afternoon trading.
Meanwhile, gold prices rose by about 2% to $5,388 per ounce, reflecting investor demand for safe-haven assets during periods of uncertainty.
Iran vs US/Israel war: GatarEnergy suspends LNG production
QatarEnergy, which is state-owned, confirmed it suspended liquefied natural gas production after Qatar’s Ministry of Defence said a drone launched from Iran targeted a facility in Ras Laffan Industrial City.
The ministry also reported that another drone struck a water tank at a power plant in Mesaieed, south of Doha.
In neighbouring Saudi Arabia, Saudi Aramco temporarily shut down its major refinery at Ras Tanura after it was reportedly hit by a drone.
The UK Maritime Trade Operations said two vessels were struck near the entrance to the Strait of Hormuz, while an “unknown projectile” exploded close to a third ship. Shipping activity in the area has slowed significantly as a result.
Saul Kavonic, head of energy research at MST Marquee, told the BBC that the market reaction remained measured.
“The market isn’t panicking,” he said, noting that oil transport and production infrastructure had not yet been the primary target of attacks.
He added that investors would closely monitor whether traffic through the Hormuz resumes, as a return to normal operations could ease pressure on crude prices.
Source: Getty Images
Dangote hikes petrol price
Nigerians will begin to feel the impact of the ongoing geopolitical turmoil in the coming days. The Dangote refinery has already increased its gantry price by N100.
The mega refinery increased the ex-depot price of petrol from ₦774 to ₦874 per litre, representing a ₦100 hike, and it takes effect immediately.
Petroleumprice.ng reported that depot owners have also started increasing prices after Dangote refinery announced its price increase.
Experts warn fuel prices may rise in Nigeria
Legit.ng earlier reported that energy experts predicted a hike in petroleum products in Nigeria, as a result of the war between Iran and Israel/US.
An expert noted that although the Petroleum Industry Act prioritises domestic refineries in crude allocation, more than 60 per cent of the Dangote refinery’s feedstock is reportedly sourced from abroad, while about 40 per cent of refined products consumed locally are still imported.
He added that although higher oil prices may boost government revenue, Nigerians could face higher pump prices if global benchmarks surge.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
