Global oil and gas prices jumped on Tuesday as the U.S.-Israeli war on Iran halted energy exports from the Middle East, ​with Tehran attacking ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq.

The benchmark Brent crude oil contract gained nearly 8% ‌on Tuesday to above $83 per barrel, the highest since July 2024, taking gains since Friday to more than 15%. European gas prices soared as much as 40% before paring gains, adding to a 40% surge on Monday. Sugar, fertiliser and soy prices have all risen too.

The conflict risks triggering a renewed spike in inflation that could choke off economic recovery in Europe and Asia if the war is prolonged in a region that accounts for just under a third of global ​oil production and almost a fifth of natural gas.

Iraq, OPEC’s second-largest producer, on Tuesday said it may be forced to cut production by more than three million barrels per day ​in a few days if oil tankers cannot move freely to loading points, according to two Iraqi oil officials.

As of Tuesday, Iraq has decreased production ⁠from the Rumaila oil field by 700,000 bpd and cut 460,000 bpd from the West Qurna 2 field, the officials said.

The conflict risks triggering a renewed spike in inflation that could choke off economic recovery in Europe and Asia if the war is prolonged in a region that accounts for just under a third of global ​oil production and almost a fifth of natural gas.
Iraq, OPEC’s second-largest producer, on Tuesday said it may be forced to cut production by more than three million barrels per day ​in a few days if oil tankers cannot move freely to loading points, according to two Iraqi oil officials.
As of Tuesday, Iraq has decreased production ⁠from the Rumaila oil field by 700,000 bpd and cut 460,000 bpd from the West Qurna 2 field, the officials said.