President Donald Trump’s war in Iran has triggered a surge in global energy markets, sending oil and gas prices soaring.
Oil prices jumped above $115 a barrel, while European natural gas spiked more than 15 percent on Thursday, the Wall Street Journal reported.
Gas prices jumped to about $3.84 a gallon this week—the highest average since late 2023—up sharply from around $2.92 a month ago after Trump launched military action linked to the conflict with Iran.
Meanwhile, European gas futures briefly surged 35 percent, more than doubling pre-conflict levels, and Brent crude climbed to $119 a barrel, according to Bloomberg. Diesel in Europe also topped $190 a barrel.
Prices are likely to climb further following Wednesday’s strike on an Iranian facility connected to South Pars, the world’s largest natural gas field, which prompted retaliatory attacks from Iran, including on Qatari LNG sites.
The attack was the first time Israel has struck natural gas facilities in Iran.
According to Axios, after the first Iranian missile strike, Qatari officials urgently reached out to the White House envoy Steve Witkoff, senior U.S. military commanders and Trump administration leaders to ask whether Washington had been informed in advance of the Israeli attack.
Trump claimed in a Truth Social post that Israeli forces “violently lashed out” and that “the United States knew nothing about this particular attack.”
But reports citing U.S. and Israeli officials suggest that Trump did not know about the attacks in advance.
Israeli officials told Axios Benjamin Netanyahu and Trump worked together on the strike as a strategic warning to Tehran.
Meanwhile, the Wall Street Journal reported that Trump approved of the strike, citing a U.S. official.
The situation is compounded by continued disruptions at the Strait of Hormuz, a critical route for global oil shipments, where the risk of Iranian attacks has kept tankers from passing.
Trump administration officials have attempted to downplay the chaos, arguing that the rise in gas prices is only temporary.
During an appearance at a manufacturing facility in Auburn Hills, Michigan, on Wednesday, Vice President JD Vance said: “Look, gas prices are up. We know they’re up and we know people are hurting because of it. We’re doing everything we can to ensure that they stay lower.”
Vance called the crippling gas prices “a temporary blip” and said, “Frankly, they’re not even as high as they were in certain parts of the Biden administration.”
In comments on CNBC on Wednesday, Kevin Hassett, director of the National Economic Council, admitted that the “hurt” caused to consumers as a result of the war with Iran was a low priority for the administration as diesel prices hit a record high.
“If it were to be extended, it wouldn’t really disrupt the U.S. economy very much at all. It would hurt consumers, and we would have to think about if that continued, what we would have to do about that, but that’s like really the last of our concerns right now,” he told CNBC.
Meanwhile, Trump indicated more attacks could be on the way, which could further impact energy prices.
In an angry post, Trump warned Iran that if it attacked Qatar, America “with or without the help or consent of Israel” would wipe out the entire South Pars operation.
“I do not want to authorize this level of violence and destruction because of the long-term implications that it will have on the future of Iran,” Trump said, “but if Qatar’s LNG is again attacked, I will not hesitate to do so.”
The Daily Beast has contacted the White House for comment.
