Qatar’s Energy Minister Saad Al-Kaabi has issued a stark warning about the potential halt of energy exports from the Gulf region if the Iran conflict persists. In an interview with the Financial Times published on Friday, Al-Kaabi stated that all Gulf energy producers could shut down exports within weeks if the conflict continues to escalate.
The ongoing conflict has already led Qatar to halt its production of liquefied natural gas (LNG) on Monday, as Iran continues to strike Gulf countries in retaliation for Israeli and US attacks. Notably, Qatar’s LNG production constitutes approximately 20% of the global supply, playing a crucial role in balancing demand in both Asian and European markets.
Al-Kaabi emphasized that if the war continues, all exporters in the Gulf region will likely declare force majeure. “Everybody that has not called for force majeure we expect will do so in the next few days if this continues,” he told the FT. This could have significant repercussions on global GDP growth, as energy prices surge and shortages become more prevalent.
Delay in Expansion Plans
Experts also expect that the conflict will delay QatarEnergy’s North Field expansion project. Al-Kaabi, who is also the CEO of QatarEnergy, one of the world’s largest LNG producers, indicated that the project’s first production, originally scheduled for mid-2026, would be postponed. “It will delay all our expansion plans for sure,” he said. The extent of the delay will depend on the duration of the conflict. “If we come back in a week, perhaps the effect is minimal, if it’s a month or two, it is different,” he added.
Potential Price Surge
Al-Kaabi forecasted that crude prices could skyrocket to $150 a barrel within two to three weeks if ships and tankers are unable to pass through the Strait of Hormuz, the world’s most vital oil export route. Additionally, gas prices could rise to $40 per million British thermal units.
Analysts and economists have highlighted the potential impact of the war on economies globally. Al-Kaabi’s warnings underscore the severe economic consequences that could arise from a prolonged conflict.
The situation remains fluid, and the global market is watching closely as developments unfold.
