Oil and Gas Prices Jump as Iran Lists Gulf Energy Targets

Video Description

Dan Williams, Reporter for Bloomberg News Based in Jerusalem, discusses the latest from the Middle East as Iran lists regional energy assets it plans to target in retaliation to an attack on the country's South Pars gas field. Oil and European natural gas prices surged as Iran listed energy assets in the region that it would target in response to a US and Israeli attack on its upstream industry. Brent oil climbed as much as 6.1% to a high of $109.75 a barrel, while Europe’s gas benchmark jumped as much as 9.1%, according to data from ICE Futures Europe.  Iran said that the US and Israel attacked the South Pars gas field, as well as associated facilities at Asaluyeh. The assets are important for domestic supply and also shipments to neigboring Iraq and Turkey. In response, Tehran issued a list of similar assets in Saudi Arabia, Qatar and the United Arab Emirates that it said residents should avoid.  The war has brought chaos across the Middle East with the stakes for energy markets rising every day. As well as effectively halting the Strait of Hormuz, the world’s most important oil-channel, the conflict has seen Iran lashing out across the region, lowering production. The South Pars attack would mark the first on Iran’s upstream facilities since the war began. While the US struck oil export hub Kharg Island late last week, it limited that attack to military targets.  Iran’s Islamic Revolutionary Guard Corps responded by publishing a list of energy sites in Saudi Arabia, the United Arab Emirates and Qatar that “have become direct and legitimate targets” following the attack on South Pars, the semi-official Tasnim news agency reported. The US took fresh steps to curb the turmoil in energy markets as Iran vowed to escalate its attacks on oil and gas infrastructure in the Middle East with the conflict stretching toward three weeks. President Donald Trump temporarily waived a century-old shipping mandate to lower the cost of transporting energy goods around the US. Vice President JD Vance and other key Trump administration officials also plan to huddle with oil executives Thursday, according to people familiar with the matter.  Still, Trump expressed renewed irritation with countries who have rejected pleas to help secure the Strait of Hormuz, a critical energy waterway which remains all but impassable.  “US allies need to get a grip – step up and help open the Strait of Hormuz,” he said in a social media post Wednesday. As military operations showed little signs of abating, Brent crude prices neared $110 a barrel. Tehran warned Gulf countries that a number of energy assets are now “legitimate targets” after Israel attacked a key gas field in Iran. Facilities in Qatar, Saudi Arabia and the United Arab Emirates are on a list of sites at risk of Iranian airstrikes, the semi-official Tasnim news agency reported on Wednesday.  Israel carried out the strike on South Pars, a senior official from the country said, asking not to be named discussing sensitive matters. Iraq reported a loss of power generation after Iran halted gas supplies as a result — the latest example of how other Middle East countries are becoming embroiled in the 19-day conflict. Anwar Gargash, a top adviser to UAE President Sheikh Mohamed bin Zayed, signaled that the UAE may be willing to help secure the Hormuz strait. Oil prices rose again on Wednesday with US crude rising toward $100 a barrel and Brent crude almost touching $110 during the session. Supplies from US emergency reserves are poised to hit the market soon, helping keep US oil price increases relatively tame compared to international benchmark Brent. Still, both oil contracts have skyrocketed by more than 40% since the US and Israel began their war on Feb. 28. So far, the US administration’s measures have done little to curb retail gasoline and diesel prices from surging to multi-year highs. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake