Shafaq News- Doha
The ongoing war in the Middle East could severely disrupt global energy markets and potentially “collapse world economies” if it continues for several weeks, Qatar’s Minister of State for Energy Affairs Saad Sherida Al-Kaabi warned on Friday.
In an interview with the Financial Times, Al-Kaabi—who is also the managing director and CEO of QatarEnergy—said energy-exporting Gulf states may be forced to halt production within weeks, a scenario that could push oil prices to around $150 per barrel.
Earlier this week, QatarEnergy declared force majeure and suspended liquefied natural gas (LNG) production after an Iranian military attack targeted operational facilities in the industrial cities of Ras Laffan and Mesaieed.
“Qatar’s return to normal delivery schedules would take weeks to months even if the conflict stopped immediately,” Al-Kaabi stated, warning that Europe would face significant pressure in the energy market as Asian buyers compete aggressively for available LNG cargoes, while other Gulf producers may also struggle to meet contractual supply commitments.
“We expect that anyone who has not yet declared force majeure will do so in the coming days if the situation continues,” Al-Kaabi said, noting, “All exporters in the Gulf region will have to declare force majeure. Otherwise, they will eventually face legal liability.”
The minister cautioned that a prolonged conflict could disrupt global economic growth and drive energy prices sharply higher worldwide.
Al-Kaabi said Qatar’s offshore facilities were not damaged, but the impact of the attack on land-based infrastructure is still being assessed. “We still do not know the full extent of the damage, and it remains unclear how long repairs will take,” he added.
He also indicated that Qatar’s $30B expansion project at the North Field—aimed at increasing LNG production capacity from 77 million tonnes to 126 million tonnes annually by 2027—will likely be delayed. The first phase had been scheduled to begin production in the third quarter of this year.