Beyond the fog of war: The real energy Armageddon is just beginning
The Middle East conflict could disrupt global energy markets for months, maybe years. But zoom out. The mayhem has been building for decades and won’t end when the fighting stops.
Complacent markets might believe that this whole mess in Iran will be over within weeks, but the real story of week three of the war is that we now face a disruption to energy markets that will last at least months, and possibly years. David Rowe
In the fog of war, five hours can seem like a lifetime. Take Thursday night. As European gas prices spiked as much as 30 per cent following the Iranian bombing of the Ras Laffan LNG complex in Qatar, stocks across the continent fell hard, and Brent crude leapt to $US119 a barrel on rumours that the US was considering export restrictions on its oil and gas.
But the panic – and the oil price – quickly subsided. The US said it was considering no such ban, and instead was looking at a second release of crude from its strategic reserves, as well as the temporary lifting of sanctions on oil exports from Iran. Yes, that Iran, the country it’s been bombing for almost four weeks.
James ThomsonColumnistJames Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
