Amidst the ongoing war in the Middle East, Iran has adopted such a strategy, the impact of which is not limited to war only, but is affecting the economy of the entire world. During the ongoing conflict with Israel, instead of directly targeting military bases, Iran has targeted those places from where oil and gas are supplied to the whole world.
Iran has also used the Strait of Hormuz to create pressure. This sea route is very important because a large part of the world’s oil passes through here. Along with this, Ras Laffan Industries city was attacked, which is the world’s largest gas center located in Qatar. About 20 percent of the world’s gas is supplied from here. Many missiles were fired in the attack, some of which were stopped but one missile hit the plant directly, causing major damage. Shell’s Pearl GTL plant located here was also badly affected, which converts gas into liquid fuel.
Habshan Gas Complex closed
The Habshan Gas Complex of the United Arab Emirates also had to be closed. This plant produces about 6.1 billion cubic feet of gas daily and meets about 60 percent of the UAE’s needs. This gas is used in generating electricity, purifying water and in big industries. An attack was also attempted in Saudi Arabia. Ballistic missiles were fired towards Riyadh and an attempt was made to target the refinery in the eastern area with drones. There is a big refinery like Ras Tanura here, which processes about 5.5 lakh barrels of oil every day and from here petrol, diesel and other fuels are sent to many countries.
Oil and gas prices rose sharply around the world
After these attacks, oil and gas prices increased rapidly across the world. The price of crude oil reached above $112 per barrel. Diesel in America has become more than $ 5 per gallon, which is the highest after 2022. Gas prices in Europe increased by nearly 70 percent and in Asia, LNG prices saw an increase of nearly 88 percent. The impact of these attacks is not limited to these countries only. Countries like China, India, Japan and South Korea are heavily dependent on these gas supplies.
India takes a major part of its gas requirement from Qatar, so the impact of this crisis can be felt here also. There are very few gas reserves left in many countries. At some places only 9 to 11 days of stock is left. The situation of countries like Pakistan and Bangladesh may be even more difficult, because they have less options.
Attack on the world’s major energy supply center
The places that Iran has targeted are not just local plants, but are major centers of energy supply for the entire world. Attack on them means that its impact reaches every country, every industry and common people. If this situation continues for a long time, inflation may increase further and it will have a deep impact on the world economy.
