Oil prices surged on Tuesday amid escalating turmoil in the Middle East following the US-Israeli attack on Iran on Saturday.
European natural gas prices surged by 30% on Tuesday morning, reaching €58 per megawatt hour, amid concerns about escalating tensions in the Middle East.
The increase follows a 36% jump recorded on Monday due to fears of supply disruptions. Liquefied natural gas (LNG) exports from Qatar, a key European supplier, remain halted. Qatar contributes significantly to Europe’s gas supplies, including via the Zeebrugge port in Belgium.
On Tuesday, the Israeli military launched new strikes on Tehran and Beirut, attacking what it calls "military targets", reports the BBC.
IDF troops have also launched a ground invasion in southern Lebanon against Hezbollah militants, allied with Iran, who have launched rockets in response.
Foreign Minister Israel Katz said that he and Prime Minister Benjamin Netanyahu "have authorised the IDF to advance and seize additional strategic areas in Lebanon in order to prevent fire on Israeli border communities".
Oil disruptions
Iran has warned it will block all oil shipments through the strategic Strait of Hormuz, a vital waterway for global energy trade, according to a Revolutionary Guards general.
The Strait of Hormuz, a narrow maritime corridor between Oman and Iran, accounts for 20% of global oil shipments, alongside significant volumes of LNG transported through it.
Iranian general, Sardar Jabbari, stated on Telegram that any vessel attempting to breach this blockade would be "burned," repeating the warning on state television.
Iranian news agency Tasnim reported the strait as "closed", though Jabbari did not phrase it explicitly in those terms.
The general also vowed to target oil pipelines and prevent the export of even a single drop of oil from the region, claiming oil prices would rise to $200 per barrel in the coming days.
He added that Iran’s armed forces are "ready to overcome this challenging stage," with countermeasures ongoing.
Hours earlier, the Revolutionary Guards announced a drone attack on an oil tanker, identified as the Athe Nova flying under the Honduran flag, which they described as being “aligned with the United States.” Details of the damage were not disclosed.
Iran has also launched attacks on energy facilities in Saudi Arabia and Qatar, prompting major disruptions.
The Ras Tanura refinery in Saudi Arabia was shut down following a drone strike, and Qatar’s LNG production was halted after an Iranian attack.
The price of US crude rose by 2.3%, reaching $72.83 per barrel, while Brent crude climbed 3% to $79.98 per barrel. This follows Monday’s nearly 8% increase, driven by fears of severe oil supply disruptions in the region.
