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Saad Al-kaabi, Qatar’s energy minister, says oil price could rise to $150 per barrel in ‘two to three weeks’ if tankers remain unable to pass through the Strait of Hormuz.
Al-kaabi gave the forecast on Friday in an interview with the Financial Times.
Ripples Nigeria reports that major container shipping lines sailings through the Strait of Hormuz and the Suez Canal have been suspended over escalating security risks.
The development came after United States and Israel ordered strikes on Iran, with Tehran retaliating with strikes across the Middle East.
Hormuz, a narrow maritime passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, is said to be the only sea route linking the Gulf’s oil and gas producers to global markets, making it one of the most strategically important waterways in the world.
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Speaking on the matter, Al-kaabi said energy markets could face severe disruptions if maritime traffic through the Strait of Hormuz remains blocked.
He projected that crude prices “could reach $150 a barrel within two to three weeks if tankers and other vessels remain unable to pass through the strategic waterway”.
Al-Kaabi also cautioned that natural gas prices could climb to $40 per metric million British thermal units (MMBtu) — almost four times higher than the levels recorded before the war, if supply disruptions continue.
He said if the conflict persists, energy producers across the Gulf region may be compelled to declare force majeure, potentially leading to the suspension of energy deliveries.
“Everybody that has not called for force majeure we expect will do so in the next few days that this continues. All exporters in the Gulf region will have to call force majeure,” Al-kaabi said.
“If they don’t, they are at some point going to pay the liability for that legally, and that’s their choice.”
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