Asian stock markets plunge after attacks on energy facilities in Qatar, Iran | US-Israel war over Iran news

Stocks fall as Israel, Iran attacks on critical energy infrastructure exacerbate fears over global energy supplies.

Asian stock markets fell sharply after attacks on natural gas facilities in Qatar, Iran and the United Arab Emirates caused fresh turmoil for global energy supplies.

Japan’s benchmark Nikkei 225 and South Korea’s KOSPI fell around 3 percent early Thursday as the attacks rattled markets already reeling from the effective closure of the Strait of Hormuz and continued curbs on oil and gas exports from the Gulf region.

Brent crude futures, the global benchmark for oil prices, rose more than 4 percent to $112 a barrel, the highest in more than a week.

Japan and South Korea, Asia’s third- and fifth-largest economies, respectively, depend on imported fossil fuels to meet 80 and 90 percent of their energy needs. In 2024, they ranked as the second and third largest importers of liquefied natural gas (LNG), taking 68 million tonnes and 47 million tonnes respectively, according to the International Gas Union.

Qatar had a supply of 77.2 million tonnes that year, making it the world’s third-largest LNG exporter behind the United States and Australia, according to the industry group.

Losses in Asian markets followed a sharp drop in US stocks overnight amid fears of rising inflation in the world’s largest economy.

Wall Street’s benchmark S&P 500 fell about 1.4 percent, while the tech-heavy Nasdaq Composite fell about 1.5 percent.

Jason Feir, global head of business intelligence at Poten & Partners, called the attack on energy facilities a “major escalation” in the regional conflict.

“The traffic disruption through the Strait of Hormuz has had a major impact on energy markets, for sure,” Feer told Al Jazeera.

“But damage to energy installations has been fairly light so far. Damage from attacks on oil and gas production and processing facilities may take a long time to repair, ensuring future supply disruptions even if the shooting stops,” he said.

‘significant damage’

Qatar said on Wednesday that its main LNG export facility at Ras Laffan Industrial City, the largest plant of its kind worldwide, had suffered “significant damage” after an Iranian missile attack.

State-run energy company Qatar Energy later said in a statement that several other LNG facilities had been attacked, causing “large-scale fires and widespread further damage”.

In a satya social post late on Wednesday, US President Donald Trump warned Iran against any further attacks against Qatar, threatening to “completely blow up” the South Pars gasfield if Tehran strikes Qatar’s energy facilities again.

The UAE said it has suspended operations at the Habshan gas plant and the Bab oil field due to falling debris after its forces successfully repelled an Iranian missile attack.

Saudi Arabia says it has foiled an attempted drone attack on a gas facility in the kingdom’s eastern region and a missile attack on the capital, Riyadh.

Iran’s strikes across the Gulf come after Tehran vowed to retaliate for Israeli attacks on its South Pars gasfield.

Attacks on critical energy infrastructure across the Middle East have put further pressure on energy prices as maritime traffic through the Strait of Hormuz has fallen amid threats of an Iranian attack.

Only a handful of ships, mostly Indian, Pakistani and Chinese-flagged ships, have traversed the waterway each day since the war began 20 days ago.

Oil prices have risen more than 50 percent as a result of the conflict that began with the US-Israel attack on Iran on February 28.