Global oil prices climbed sharply on Thursday, gaining up to 3%, after Iran launched attacks on key energy installations across the West Asia. The strikes came in response to an earlier attack on its South Pars gas field by Israel.

Brent crude surged $3.69, or 3.44%, to $111.07 per barrel in early trade, while US West Texas Intermediate (WTI) rose $2.29, or 2.38%, to $98.61. The rally follows a strong close for Brent in the previous session, when it advanced 3.8%, while WTI ended nearly unchanged.

Attacks disrupt key energy hubs

QatarEnergy said Iranian missile strikes on Ras Laffan—home to the country’s main LNG processing facilities—resulted in “extensive damage” to its energy infrastructure. In the UAE, authorities temporarily halted some operations after debris from intercepted missiles impacted the Habshan gas facility and the Bab oil field.

Saudi Arabia also reported intercepting four ballistic missiles targeting Riyadh, along with foiling a drone attack aimed at a gas installation.

Iran had earlier issued evacuation advisories around multiple oil and gas sites in Saudi Arabia, the UAE, and Qatar before carrying out the strikes. The move was seen as retaliation for damage to its own energy assets in South Pars and Asaluyeh. South Pars, shared with Qatar, is part of the world’s largest natural gas reserve.

Tight supply outlook supports prices

Reports indicate that the administration of US President Donald Trump is weighing options to strengthen its military presence in the region. Plans under consideration include deploying additional troops and ensuring safe passage for oil tankers through the Strait of Hormuz, potentially involving air and naval forces.

Market participants are closely watching developments around the Strait, a critical route for global oil shipments, as any prolonged disruption could further tighten supply and keep prices volatile.

For large oil-importing countries such as India, a sustained rise in crude prices could widen the trade deficit and add to inflationary pressures, especially if the tensions persist and disrupt supply chains in the coming weeks.