GLOBAL oil and natural gas prices soared on Thursday after Iran attacked a key natural gas facility in Qatar that can supply one-fifth of the worlds gas as well as two oil refineries in Kuwait. Brent crude, the international benchmark, rose to USD 116.38 per barrel, up from under USD 73 per barrel on the eve of the war. The European TTF benchmark for natural gas prices traded 24 per cent higher on Thursday. If the disruptions from Iran’s attacks on its Gulf Arab neighbours’ energy infrastructure keep oil and gas prices high for long, they could create a debilitating wave of inflation for the global economy. US benchmark crude oil gained 1.1 per cent to USD 96.45 a barrel early Thursday, while the Henry Hub future contract, the benchmark for US natural gas, gained 5.1 per cent. As oil and gas prices spiked, world shares retreated and US futures edged 0.2 per cent lower.

 

Germany’s DAX lost 2.1 per cent to 23,015.40 and the CAC 40 in Paris fell 1.5 per cent to 7,848.88. Britain’s FTSE 100 shed 1.7 per cent to 10,134.02. In Asian share trading, Tokyo’s Nikkei 225 fell 3.4 per cent to 53,372.53 as the Bank of Japan opted to keep its benchmark interest rate on hold at 0.75 per cent. “Global financial and capital markets have been volatile and crude oil prices have risen significantly; future developments warrant attention,” the BOJ said. Higher oil prices are a heavy burden for Japan, which like South Korea and Taiwan depends on imports of most raw materials for industries that rely heavily on oil and its derivatives. The Kospi in Seoul lost 2.7 per cent to 5,763.22. In Hong Kong, the Hang Seng slipped 2 per cent to 25,500.58, while the Shanghai Composite index shed 1.4 per cent to 4,006.55. Australia’s S&P/ASX 200 lost 1.7 per cent to 8,497.80 and Taiwan’s Taiex fell 1.9 per cent. In India, which has also suffered from shocks to supplies of oil and gas, the Sensex lost 2.7 per cent.