By Joe Wallace
Iran retaliated against an Israeli attack on facilities at its main gas field with strikes on energy plants in Qatar and Saudi Arabia, pushing futures for Brent crude almost 10% higher to $118 a barrel. Even more dramatic were the moves in natural-gas prices in Europe, which is lurching toward a second energy crisis in four years.
Traders fear Iran's attack on Qatar's mammoth liquefied natural gas export plant, Ras Laffan, could put a dent in global supplies of the power-generation and heating fuel even after the war ends and the Strait of Hormuz reopens.
One sign traders are gearing up for lasting disruption: Futures contracts for natural gas that will be delivered next winter have shot up alongside prices for the next few months. Europe doesn't buy much of its LNG from Qatar. But it competes for American cargoes with Asian importers, which will need more of them if Qatari supplies aren't available.
In oil, longer-term contracts have also jumped, though much less than prices for the next few months. Traders say that premium for cargoes that will be delivered imminently is the market's way of signaling there's a shortage in the here and now. In trader jargon, it's known as "backwardation."
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(END) Dow Jones Newswires
March 19, 2026 06:27 ET (10:27 GMT)
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