MIDDLE EAST CRISIS: Crude oil prices will soon hit $150, Qatar minister warns

Saad Al-kaabi, Qatar’s energy minister, said oil prices could rise to $150 a barrel in ‘two to three weeks’ if tankers remained unable to pass through the Strait of Hormuz.

Al-kaabi gave the prediction on Friday in an interview with the Financial Times.

Ripples Nigeria reports that major container shipping lines sailing through the Strait of Hormuz and Suez Canal have been suspended due to increased security risks.

This development came after the United States and Israel ordered attacks on Iran, and Tehran retaliated with attacks in 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 connecting oil and gas producers in the Gulf with global markets, making it one of the world’s most strategically important waterways.

READ ALSO: Nigerians warn Asari Dokubo against comments that will incur the wrath of the US

Speaking on the issue, Al-kaabi said energy markets could face severe disruption if maritime traffic through the Strait of Hormuz remains blocked.

He projected crude oil 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 warned that natural gas prices could rise to $40 per metric million British thermal unit (MMBtu) – almost four times higher than levels recorded before the war, if supply disruptions persist.

He said if the conflict continues, energy producers in the Gulf region may be forced to declare force majeure, potentially leading to the suspension of energy deliveries.

“Everyone who has not yet called force majeure as we expect will do the same in the next few days if this continues. All exporters in the Gulf region must declare force majeure,” Al-kaabi said.

“Otherwise, they will at some point have to pay for it legally, and that is their choice.”