European gas prices surged by as much as 30 percent on Monday as the escalating Middle East conflict rattled global energy markets and heightened fears of prolonged supply disruptions.
The benchmark Dutch TTF natural gas contract climbed to €69.50 before easing slightly, though it remained below the levels recorded at the start of Russia’s 2022 invasion of Ukraine.
The spike in prices followed fresh attacks by Iran on energy infrastructure across the Gulf, including a strike on a petroleum complex in Bahrain.
Bahrain’s extensive Al Ma’ameer oil facility was hit in the attack, sparking a fire and causing damage. State-owned energy firm Bapco subsequently declared force majeure, citing the impact of the ongoing regional conflict and the strike on its refinery complex. Energy producers in Qatar and Kuwait had earlier issued similar declarations.
Oil prices also surged amid concerns over potential supply disruptions triggered by the conflict.
The turmoil in energy markets weighed heavily on global equities, with Asian stock markets plunging as crude oil prices climbed to their highest level since the outbreak of the war in Ukraine in 2022.
The market instability came as Iran intensified missile and drone attacks across the Gulf, hours after the U.S. Department of State ordered non-essential American diplomatic staff and their families to leave Saudi Arabia due to security risks.
Drones struck the U.S. embassy in Riyadh last week, while additional drone incidents were reported at U.S. diplomatic missions in Kuwait and the United Arab Emirates.
Authorities in Bahrain said an overnight Iranian drone attack on the island of Sitra injured 32 people, all of them Bahraini citizens. The country’s health ministry reported four serious cases, including children.
Among the victims were a 17-year-old girl who sustained severe head and eye injuries and a two-month-old baby, according to a statement carried by the state news agency.
Bahraini officials said the fire at the Al Ma’ameer oil facility had been brought under control.
Explosions were also reported in Doha on Monday, according to AFP journalists, as Qatar, Saudi Arabia, the United Arab Emirates and Kuwait reported fresh attacks.
Qatar’s defence ministry said its forces intercepted a missile, while Saudi Arabia said its air defences destroyed two waves of drones headed for the Shaybah oil field in the country’s southeast.
Authorities in the United Arab Emirates said air defence systems responded to a missile threat, while Kuwait reported another missile and drone attack on Monday after authorities said seven missiles and five drones targeted the country a day earlier.
Gulf states have borne much of Tehran’s retaliation since the United States and Israel launched a major aerial campaign against Iran on February 28.
At least 21 people have been killed across the Gulf since the attacks began, including 10 civilians and seven U.S. service members.
Meanwhile, Iran’s president, Masoud Pezeshkian, warned that the Islamic Republic would respond against neighbouring countries if their territory is used to launch attacks against Iran.
