Qatar's energy minister, Saad al-Kaabi, has warned that the ongoing conflict in the Middle East could have a devastating impact on world economies. He predicts that if the war continues for a few weeks, GDP growth will be impacted, and energy prices will rise significantly.
Crude oil prices could soar to $150 a barrel in 2-3 weeks if tankers and other merchant vessels are unable to pass through the Strait of Hormuz, while gas prices could rise to $40 per million British thermal units.
Gulf exporters may shut down production within weeks, and those who have not called for force majeure will "do so in the next few days." The conflict has already led to a shortage of some products and a chain reaction of factories that cannot supply.
Qatar, the world's second-largest producer of LNG, has declared force majeure after an Iranian drone strike at its largest liquefied natural gas plant, and production will not restart until there is a complete cessation of hostilities.
