Crude oil surges as Qatar expels Iranian attachés, Saudi signals retaliation

Brent crude prices surged to US$109.91 a barrel on Wednesday (March 18) after Iran launched missiles at Qatar’s Ras Laffan industrial complex. Qatar said it had successfully intercepted four of the five missiles, but the fifth struck Ras Laffan, causing extensive fire damage. The blaze has now been extinguished.

The attack triggered a diplomatic confrontation, with Qatar retaliating by declaring Iran’s military attaché and security attaché personae non gratae and ordering them to leave the country within 24 hours. Doha said the move was in response to repeated Iranian attacks and violations of its sovereignty.

Meanwhile, Saudi Foreign Minister Prince Faisal bin Farhan said after a joint meeting with foreign ministers from Arab and Islamic countries in Riyadh that Saudi Arabia reserved the right to take military action against Iran. He said any trust in Iran had collapsed after Riyadh was hit by Iranian missiles.

Countries attending the meeting included Azerbaijan, Bahrain, Egypt, Jordan, Kuwait, Pakistan, Qatar, Syria, Turkey and the United Arab Emirates.

Iran claimed the attack on its neighbour was retaliation for an Israeli strike earlier on Wednesday on the massive South Pars gas field, marking a major escalation in the war involving the United States, Israel and Iran. 

It is well known in the energy industry that Iran’s South Pars natural gas field forms part of the world’s largest natural gas reserve, with both Qatar and Iran operating facilities in the area.