Oil price at two-year high after Qatar warns all Gulf production could stop within days

Oil prices have hit their highest mark in over two years after Qatar’s energy minister indicated that all oil and gas production in the Gulf could halt within days. Saad al-Kaabi shared this outlook with the Financial Times, mentioning that the ongoing conflict in the Middle East, a crucial region for global energy and shipping, might "bring down the economies of the world." On Friday, Brent crude oil prices jumped more than 9%, surpassing $93 a barrel, marking the highest level since autumn 2023. Increased oil prices can significantly impact expenses, affecting how much people pay to fill their cars, as well as the costs of heating, food, and imported goods. Experts warn that continued high oil and gas prices, which have also risen this week, could lead to inflation in major economies like the UK and the US, where inflation had been generally decreasing. Kaabi predicted that oil could rise to $150 a barrel if the conflict with Iran persists in the coming weeks. He stated to the FT, "If this war continues for a few weeks, GDP growth around the world will be impacted. Everyone's energy prices will rise. There will be shortages of certain products, and this will cause a chain reaction in factories that cannot supply." In the UK, consumers are already facing higher prices for petrol and diesel. On Friday, the RAC reported that petrol prices at UK stations increased by 3.7p, while diesel prices rose by 6p, reaching a 16-month high since Saturday.