Qatar Warns Gulf Energy Exports Could Halt Within Days

On March 6, 2026, Qatar's Energy Minister Saad al-Kaabi delivered a warning that reverberated through every trading floor and government ministry on the planet: the war engulfing the Persian Gulf would force every energy exporter in the region to halt shipments within days, potentially sending oil prices to $150 a barrel and natural gas to $40 per million thermal units [1][2]. It was not bluster. Qatar had already shut down the world's largest liquefied natural gas export facility. Ships were no longer transiting the Strait of Hormuz. And the ripple effects were just beginning.

"This will bring down the economies of the world," al-Kaabi told the Financial Times [3]. He was describing a scenario that energy analysts have modeled for decades but never expected to witness at this scale: the near-total closure of the chokepoint through which roughly one-fifth of the world's oil and a significant share of its LNG passes every single day.

How We Got Here

The crisis traces its origins to February 28, 2026, when the United States and Israel launched coordinated airstrikes against Iran under Operation Epic Fury, targeting military installations, nuclear sites, and leadership infrastructure [4]. Iran's Supreme Leader Ali Khamenei was killed in the strikes. Tehran's retaliation was swift and devastating: the Islamic Revolutionary Guard Corps launched barrages of missiles and drones against U.S. military bases and Israeli positions across Gulf states, while simultaneously warning that any vessel attempting to transit the Strait of Hormuz would be targeted [5].

The effect on shipping was immediate and catastrophic. Tanker traffic through the strait dropped by approximately 70% within the first 48 hours, with more than 150 vessels anchoring outside the waterway to avoid the danger zone [4]. Within days, traffic effectively fell to zero. Major container shipping lines — Maersk, CMA CGM, and Hapag-Lloyd — suspended all transits through both the strait and related Red Sea routes [5].

On March 2, Iranian drone strikes forced QatarEnergy to shut down production at its massive Ras Laffan and Mesaieed facilities, taking roughly 20% of global LNG export capacity offline in a single stroke [6][7]. European natural gas prices surged from approximately €30/MWh to above €60/MWh within 48 hours — nearly doubling [5].

The Oil Price Shock

The market response has been historic. U.S. West Texas Intermediate crude surged 35.63% in a single week — the largest weekly gain in the history of the futures contract, which dates back to 1983 [8]. WTI settled at $90.90 per barrel, while global benchmark Brent crude rallied to $92.69, its highest level in nearly two years [8][9].

Source: FRED / U.S. Energy Information Administration

Data as of Mar 8, 2026CSV

The FRED data tells a stark story: WTI crude was trading around $67 on February 27, just before the strikes began. By March 2, the last available settlement, it had already jumped to $71.13 — and subsequent trading pushed it past $90 by March 6 [10]. But al-Kaabi's warning suggests the worst may be yet to come.

"Crude prices could soar to $150 a barrel within two to three weeks if tankers remained unable to pass through the Strait of Hormuz," the minister said [1]. He added that all Gulf exporters who had not already declared force majeure — a legal term freeing companies from contractual obligations due to extraordinary circumstances — would do so "in the next few days" [3].

Source: U.S. Energy Information Administration

Data as of Mar 8, 2026CSV

The Anatomy of a Chokepoint Crisis

The Strait of Hormuz is a narrow waterway, just 21 miles wide at its narrowest point, separating Iran from Oman and the United Arab Emirates. In 2025, approximately 13 million barrels of oil per day transited the strait, representing roughly 31% of all seaborne crude flows worldwide [4][11]. It is the single most important energy chokepoint on Earth, and its effective closure represents the nightmare scenario that energy security planners have long feared.

The strait's importance extends beyond crude oil. Qatar, the world's second-largest LNG exporter, ships virtually all of its production through this corridor. So do significant volumes of refined petroleum products, petrochemicals, and fertilizer feedstocks from Saudi Arabia, the UAE, Kuwait, and Iraq [12].

The U.S. Energy Information Administration has long identified the strait as the world's most critical oil transit chokepoint, noting that "there are limited options to bypass the Strait of Hormuz" [11]. Saudi Arabia has some pipeline capacity that bypasses the strait, but it is insufficient to replace the volumes currently disrupted.

Who Gets Hurt — And How Badly

The pain from this crisis is not distributed equally. Asia, which receives approximately 70% of the crude oil shipped through the Strait of Hormuz, faces the most acute exposure [5][13].

South Asia is in the most precarious position. Qatar and the UAE account for 99% of Pakistan's LNG imports, 72% of Bangladesh's, and 53% of India's [5]. For Pakistan, whose economy is already fragile, the disruption poses an existential energy security threat. The KSE 100 index on the Pakistan Stock Exchange recorded its largest-ever single-day decline [14].

Japan and South Korea, both heavily dependent on Middle Eastern energy, are also severely exposed. The Middle East supplies roughly 75% of Japan's oil imports and about 70% of South Korea's [5]. Japan holds approximately 4.4 million tons of LNG in reserves and South Korea about 3.5 million tons — enough for only two to four weeks of stable demand [5]. South Korea's KOSPI index suffered its biggest crash since the 2008 financial crisis [14].

China, while materially exposed, has somewhat more insulation. Its LNG inventories stood at 7.6 million tons at the end of February, providing short-term cover [5]. But even China cannot avoid the impact of a sustained disruption.

Europe faces a different but no less serious challenge. While the continent has diversified its energy sources since the Russia-Ukraine crisis, many European countries — Italy, Greece, Spain, Poland, and Belgium — still rely on Hormuz-transiting imports for refining or direct consumption [13]. European natural gas prices had already nearly doubled, and sustained disruption would push the continent to "the brink of recession," according to Bloomberg analysts [14][15].

The OPEC Response — And Its Limits

OPEC+ moved quickly but modestly, approving a production increase of just 206,000 barrels per day — a figure that surprised analysts expecting a far larger response given the scale of the crisis [16][17]. The problem, however, is not just production volume. Most OPEC+ members have limited spare capacity, and even those that do — primarily Saudi Arabia and the UAE — face the same logistics bottleneck: they cannot ship the oil until the Strait of Hormuz reopens [16].

"It doesn't matter how much you can pump if you can't get it to market," one senior energy trader told CNBC [8].

The United States holds more than 400 million barrels in its Strategic Petroleum Reserve, but energy experts note that a full Hormuz crisis could outstrip any offsets provided by strategic stocks [16]. The Trump administration had not publicly commented on whether it would authorize SPR releases as of the time of this writing.

The Longer Game: Recovery and Reckoning

Perhaps the most sobering element of al-Kaabi's warning was his assessment of recovery timelines. Even if the war ended immediately, he said, it would take Qatar "weeks to months" to return to a normal cycle of LNG deliveries [1][3]. The infrastructure required to liquefy and ship natural gas is complex and cannot be restarted like a light switch. Production facilities that have been shut down under emergency conditions require careful inspection, testing, and gradual ramp-up.

The broader implications extend well beyond energy markets. Higher oil and gas prices feed directly into inflation, threatening to reverse the progress central banks have made in taming price pressures [18]. Morgan Stanley analysts warned that a sustained disruption would create "a new inflationary shock at the worst possible time," with knock-on effects for interest rate policy worldwide [19].

Industrial supply chains are also at risk. Gulf states are major producers of petrochemicals and fertilizer feedstocks, and al-Kaabi warned of "a chain reaction of factories that cannot supply" if the conflict persists [3]. Agricultural commodity prices could spike if fertilizer shortages materialize during the Northern Hemisphere growing season.

The Geopolitical Calculus

President Trump's demand for Iran's "unconditional surrender" on March 6 injected fresh uncertainty into an already volatile situation [8]. The demand suggested that Washington was not seeking a quick de-escalation, raising the prospect of a prolonged conflict that could keep the strait closed for weeks or longer.

For Gulf states caught in the crossfire — Qatar, the UAE, Kuwait, Bahrain — the conflict represents an agonizing dilemma. These nations have invested decades and hundreds of billions of dollars building their economies around energy exports. They have cultivated relationships with both Western and Asian buyers and positioned themselves as reliable suppliers in an uncertain world. The war threatens to undo years of that work in a matter of days.

The International Energy Agency has convened emergency consultations with member states, and several Asian nations are exploring whether alternative supply routes — including pipelines through Turkey or expanded use of Russia's Arctic LNG facilities — could partially compensate for lost Gulf volumes [13]. But these alternatives are limited in scale and would take months to operationalize.

What Comes Next

The world is now watching two clocks simultaneously. The first measures how long the Strait of Hormuz remains effectively closed. Every additional day of closure draws the global economy closer to the kind of energy shock not seen since the 1973 Arab oil embargo. The second clock measures strategic petroleum reserves in importing nations — the buffer between disruption and genuine energy emergency.

Al-Kaabi's $150-per-barrel forecast is not the worst case. Some analysts have warned that a truly prolonged blockade could push prices to $300 per barrel in an extreme scenario, matching or exceeding the inflation-adjusted highs of the 2007-2008 oil shock [4].

For now, the markets are pricing in uncertainty, not catastrophe. But as one veteran energy analyst told Al Jazeera: "The difference between a $90 barrel and a $150 barrel is about two more weeks of this" [20].

The Gulf's energy arteries are blocked. The question is not whether the global economy will feel the pain — it already is — but how deep the wound ultimately goes.