Qatar expects all Gulf energy producers to shut down exports within weeks if the Iran conflict continues and drives oil to $150 a barrel, the country’s Energy Minister Saad al-Kaabi told the Financial Times in an interview published on Friday.
Qatar halted its production of liquefied natural gas on Monday, as Iran continued to strike Gulf countries in retaliation for Israeli and U.S. attacks.
The country’s LNG production is equivalent to about 20% of global supply and plays a major role in balancing both Asian and European markets’ demand for the fuel.
“Everybody that has not called for force majeure we expect will do so in the next few days that this continues. All exporters in the Gulf region will have to call force majeure,” Kaabi told the FT.
“If this war continues for a few weeks, GDP growth around the world will be impacted,” he said.
“Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply,” Kaabi said.
Kaabi said even if the war ended immediately it would take Qatar “weeks to months” to return to a normal cycle of deliveries.
Analysts and economists have highlighted the potential impact of the war on economies globally.
