Qatar's Energy Minister Saad al-Kaabi has warned that energy exports from the Gulf region could come to a halt "within weeks" if the war on Iran continues to escalate, potentially throwing global energy markets into turmoil. In an interview with The Financial Times published on Friday, al-Kaabi stated that if the conflict persists for weeks, "GDP growth around the world will be impacted." He added that energy prices would rise globally, leading to shortages of some products and a chain reaction of factory shutdowns.

Qatar halted liquefied natural gas (LNG) production on Monday after Iran fired a barrage of missiles and drones at the country and its Gulf neighbours in response to attacks by the United States and Israel, which began on Saturday. Iranian strikes have increasingly targeted energy infrastructure, driving a sharp increase in gas prices and raising alarm internationally. Qatar's LNG production accounts for approximately 20% of global supply and plays a crucial role in balancing demand in Asian and European markets.

Al-Kaabi told the FT that "everybody that has not called for force majeure we expect will do so in the next few days that this continues," referring to the legal provision that frees companies from liability during extraordinary events. He emphasized that "all exporters in the Gulf region will have to call force majeure." The minister also noted that even if the war ended immediately, it would take Qatar "weeks to months" to return to a normal delivery cycle.

Thijs Van de Graaf, an energy fellow at the Brussels Institute for Geopolitics, explained that tanker traffic through the strategic Strait of Hormuz has dropped dramatically due to the war. "All of the producers in the Gulf who rely on that export route will have to shut in production, like Iraq has already done for two or three major oil fields," Van de Graaf told Al Jazeera. He added, "This could have long-term, knock-on effects, because you do not turn on and off an oil well like flipping the switch of a light. This is bad news and the clock is ticking for many producers in the region."

The war has shown no sign of abating, with senior US officials promising to rain "death and destruction" on Iran amid growing concerns of a possible ground invasion. Meanwhile, Iran has continued to fire at targets across the region despite international condemnation of the strikes as a violation of international law. In a social media post on Friday, Iranian President Masoud Pezeshkian said Iran was "committed to lasting peace in the region yet we have no hesitation in defending our nation's dignity & sovereignty." Addressing renewed mediation efforts, Pezeshkian stated that any such initiatives "should address those who underestimated the Iranian people and ignited this conflict," referring to the US and Israel.

Source: www.aljazeera.com