Crude prices jump, global stocks fall as energy shock fears intensify

PARIS (AFP) - Global oil prices surged while stock markets tumbled Thursday after escalating tensions in the Gulf raised concerns over a fresh energy shock and supply disruptions.

Brent crude climbed past $113 per barrel after Iran warned it could target regional energy infrastructure, following a strike on its key South Pars gas field, which it shares with Qatar.

Missile strikes reportedly hit Qatar’s Ras Laffan — the world’s largest LNG hub — causing significant damage and heightening fears over global energy supplies. European gas prices spiked more than 30% in response.

The situation worsened as Abu Dhabi temporarily shut down a gas facility after debris from intercepted missiles fell nearby, adding to uncertainty in already strained markets.

Oil prices jumped over 5%, while equities across Asia declined sharply. Major indexes in Tokyo and Seoul led losses, with other regional markets also closing lower.

US President Donald Trump said Washington had no prior knowledge of the initial strike on South Pars but warned of severe consequences if attacks continue.

Iranian officials cautioned that further strikes could trigger wider regional escalation, potentially impacting global energy stability.

The surge in oil and gas prices has reignited inflation concerns, with central banks now facing renewed pressure over interest rate policies. Federal Reserve Chair Jerome Powell said the situation remains uncertain, noting that rising energy costs could drive short-term inflation higher.

The Bank of Japan also warned of inflation risks linked to higher crude prices, while investors await key policy decisions from European and British central banks later in the day.