Global oil and natural gas prices climbed sharply as tensions in the Middle East intensified following a series of attacks linked to Iran across the region.

Energy markets reacted strongly after QatarEnergy temporarily halted liquefied natural gas production following military strikes targeting its facilities. Qatar is one of the world’s largest LNG exporters, and any disruption to its output can quickly influence global supply.

Natural gas prices surged on Monday after the production shutdown. Europe’s benchmark gas price rose as much as 50 percent during trading before ending the day roughly 39 percent higher.

Oil markets also responded to the rising tensions. The global benchmark Brent crude briefly climbed to about $82 per barrel.

The increase came after reports that multiple vessels were attacked near the strategic Strait of Hormuz over the weekend.

Vital Shipping Route Faces Disruption

The Strait of Hormuz is one of the most important energy corridors in the world. Roughly 20 percent of global oil and gas shipments pass through the narrow waterway connecting the Persian Gulf with international markets.

Iran warned ships not to pass through the strait during the current conflict, raising fears that global energy supplies could be disrupted.

Shipping activity in the region slowed significantly after the attacks. Analysts said many vessels either delayed their journeys or anchored outside the strait while waiting for clearer security conditions.

The UK Maritime Trade Operations reported several incidents involving commercial vessels. Two ships were struck, and another experienced an explosion nearby caused by an unidentified projectile.

Global Stock Markets React

Stock markets across Europe and the United States also reacted to the escalating tensions.

In the United States, the Nasdaq Composite and the S&P 500 initially opened lower but later recovered their losses to close slightly higher.

European markets showed sharper declines. London’s FTSE 100 fell 1.2 percent, with airline stocks among the largest losers after airspace disruptions across parts of the Middle East.

Banking shares also declined. Investors worried that prolonged increases in energy prices could push inflation higher and delay expected interest rate cuts from central banks.

Meanwhile, oil and defense companies were among the strongest performers in the index.

In continental Europe, France’s CAC 40 dropped 2.2 percent while Germany’s DAX fell 2.6 percent.

Energy Infrastructure Targeted

The conflict has increasingly involved attacks on energy facilities.

In Qatar, officials said drones launched from Iran struck industrial infrastructure in Ras Laffan Industrial City and Mesaieed, both key hubs for LNG production.

Meanwhile, Saudi Aramco temporarily shut down its major Ras Tanura refinery after it was hit by a drone strike.

Although analysts say global oil production has not yet been severely disrupted, the attacks have increased uncertainty across energy markets.

Analysts Warn Prices Could Climb Higher

Energy experts say markets remain sensitive to any escalation involving oil transport routes.

Saul Kavonic, head of energy research at MST Marquee, said traders are watching closely to see whether shipping traffic through the Strait of Hormuz resumes normally.

If maritime routes reopen safely, oil prices could stabilize.

However, other analysts warned that a prolonged conflict could push crude oil prices above $100 per barrel.

Robin Mills, chief executive of consultancy Qamar Energy and a former executive at Shell, said traders are reacting quickly to geopolitical developments.

Higher energy prices could also ripple through the broader economy. Rising fuel costs often increase transportation and production expenses, which can lead to higher prices for goods and services.

Economists warn that if energy prices remain elevated for an extended period, the impact could spread to food, manufacturing, and other sectors while complicating efforts by central banks to control inflation.