$87 Now To $150 A Barrel In 2-3 Weeks: Qatar's Big Oil Warning Amid Iran War

Sounding a warning, Qatar's energy minister has said all energy producers in the Middle East could shut down exports within weeks if the conflict between US-Israel and Iran continues, driving the price of oil to $150 a barrel. 

As the war entered its seventh day on Friday, the global oil benchmark, Brent crude, rose by 2.53% to $87.57 per barrel. The rise is being driven primarily by the closure of the Strait of Hormuz, which sees nearly 20% of global oil and gas exports flowing through it. 

Kaabi told the Financial Times that crude prices could touch $150 a barrel within two to three weeks if tankers remain unable to pass through the narrow waterway between Oman and Iran. 

Qatar, which accounts for nearly 20% of global supplies of liquefied natural gas, announced on Monday that it was halting production following strikes on its facilities by Iran. 

"Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City... QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products," the company had said in a statement.

Kaabi, who is also the CEO of QatarEnergy, told the Financial Times, "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," 

"If this war continues for a few weeks, GDP growth around the world will be impacted... 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. 

India's Situation

Government sources said on Friday that India has enough reserves of crude oil and gas in the country and all LPG refineries have been asked to boost production. 

"Today, we have more energy sources available than the fuel currently stranded in the Strait of Hormuz. Our position in terms of crude oil, oil products, and LPG is very good. We are in a good position based on current reserves," a source said, adding, "We will increase our supplies from other nations and make up for the shortfall in supplies from the Strait of Hormuz."

The US has also given India a 30-day waiver to buy oil from Russia. 

"President Trump's energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea," US Treasury Secretary Scott Bessent said.