International oil and natural gas prices surged together as clashes between Israel and Iran spread to major energy facilities in the Middle East.
According to Bloomberg News on the 19th local time, May Brent crude on the London ICE Futures Exchange at one point during the session jumped more than 10% from the previous day to as high as $119.13 per Barrel (Bbl). That is close to the highest level since July 2022. It later gave back part of the gain but was still up more than 6%.
April West Texas Intermediate (WTI) also rose to $100.02 per Barrel early in the session, then pared gains and traded in the high $90s. As a result, the price gap between WTI and Brent widened to the largest level in 11 years, Reuters said.
Natural gas prices also spiked. European natural gas futures jumped 35%, soaring to more than double the prewar level.
International oil and gas prices have risen sharply together for three consecutive weeks. The trend is analyzed as a result of the war between the United States and Israel and Iran expanding into an all-out barrage on major energy facilities in the Middle East.
Israel the previous day bombed natural gas processing facilities in the South Pars and Asaluyeh areas, Iran's largest gas field. In response, Iran attacked the Ras Laffan gas facilities, Qatar's LNG (liquefied natural gas) production hub, and there were reports of extensive damage.
Damage also continued in Saudi Arabia and Kuwait. The SAMREF refinery, a joint venture between Aramco and ExxonMobil in Yanbu, Saudi Arabia, was hit by a drone attack, temporarily halting operations at an oil export terminal, and two refineries in Kuwait also caught fire.
Bloomberg News said attacks targeting key energy facilities could increase long-term supply instability and upward pressure on prices. Even if the war ends, it may take considerable time to repair damaged production and refining facilities.