Brent tops $110 as Middle East energy sites come under attack

Brent crude rose sharply above US$110 a barrel in early trading on Thursday (March 19) as fresh attacks on energy infrastructure in the Middle East heightened fears of broader supply disruption.

Brent gained 2.8% to US$110.40 a barrel in the morning session, as markets reacted to escalating strikes between Iran and Israel, with both sides targeting key energy assets and showing no sign of de-escalation.

The latest surge pushed the global oil benchmark back above the US$110 level, although it remained below the intraday peak of US$119.50 a barrel recorded on March 9, shortly after the conflict intensified.

The most recent escalation came after Iran reportedly struck an industrial complex in Qatar that houses the world’s largest liquefied natural gas export facilities. The attack was said to have caused heavy damage, while Qatari authorities were dealing with a fire at Ras Laffan Industrial City following what was described as a second strike.

Earlier, Israel had attacked Iran’s massive South Pars natural gas field, one of the region’s most critical energy sites.

The exchange of attacks on energy infrastructure has deepened concern that the conflict could increasingly threaten oil and gas production as well as shipping routes across the Gulf.

Investor sentiment also weakened across regional markets. Equity indexes in Asia, including Australia, Japan and South Korea, fell further at the open as traders assessed the risk of wider economic fallout from the conflict.

Gold, traditionally seen as a safe-haven asset, did not benefit from the latest crisis. Instead, the metal remained under pressure from a stronger US dollar and reduced expectations of near-term interest rate cuts by the Federal Reserve. Gold was last quoted at around US$4,835 an ounce, compared with roughly US$5,279 before the war erupted.

Separately, Reuters reported, citing US officials and people familiar with the matter, that Washington was considering sending several thousand additional troops to the Middle East.

One option under review was the deployment of US forces near Iran’s coastline to help secure passage through the Strait of Hormuz, according to the report.

Meanwhile, a vessel caught fire near the United Arab Emirates after being hit by projectiles, according to the United Kingdom Maritime Trade Operations Centre. The incident occurred 11 nautical miles east of Khor Fakkan in the UAE.

The latest developments have added to fears that any prolonged disruption to Gulf energy infrastructure or maritime traffic could drive oil prices even higher and further unsettle global financial markets.