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Oil Crosses $110 a Barrel after Gas Field Strike

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Oil prices rose above $110 (£82.78) a barrel after Iranian media reported an airstrike hitting a facility on the world’s largest natural gas field.

The Brent crude oil benchmark hit $112 a barrel in early Thursday trade in Asia, more than 5 per cent higher than Tuesday’s prices.

The price has since fallen slightly.

The benchmark UK gas price also jumped by 6 per cent to 143.53p a therm before falling back to around the 140p mark.

The surge followed reports Iran’s petrochemical complex on the South Pars gas field had been hit.

Several hours later, Qatar reported that there was “extensive damage” at the Ras Laffan industrial site following threats from Iran.

While the price of both oil and gas spiked, they remained below highs seen earlier in the conflict.

Oil reached $116.78 a barrel on 9 March, while UK gas reached 162.55p a therm on 3 March.

Iran’s oil ministry said a fire at the petrochemical complex was under control, according to Tasnim, a news agency affiliated with the Islamic Revolutionary Guard Corps.

Iran’s military warned it would take “decisive action” in response to the strike on its energy infrastructure.

“As previously warned, if the fuel, energy, gas, and economic infrastructures of our country are attacked by the American-Zionist enemy, in addition to a powerful counterattack against the enemy, we will severely strike the origin of that aggression as well,” the military said in a statement published by Tasnim.

“We consider targeting the fuel, energy, and gas infrastructures of the countries of origin legitimate and will retaliate strongly at the earliest opportunity.”

Qatar also operates facilities on the gas field, which it calls North Dome.

But the country, which produces a fifth of the world’s liquefied natural gas, had halted production earlier in March in response to the conflict.

Qatar’s foreign ministry spokesman Majed Al Ansari said strikes against energy infrastructure “constitutes a threat to global energy security”.

Just after 1815 GMT, the Qatari interior minister said it was responding to “a fire in the Ras Laffan area following an Iranian targeting”. Qatar’s petrol firm Qatar Energy later said there was “extensive damage” at the site.

The interior minister said just after 1900 GMT that it had “initially brought the fire in Ras Laffan under control, with no injuries reported”.

Ras Laffan was among the sites listed by Iran in a warning that it would take “decisive action” after its South Pars gas field facilities were reportedly hit by Israeli strikes.

‘Energy markets will likely remain volatile’

AJ Bell’s head of financial analysis Danni Hewson said the attack and retaliation by Iran had “helped dial up the temperature once again and put renewed upward pressure on oil prices”.

“Any solution to the blockage of the Strait of Hormuz looks pretty distant at this point and until there is progress on that front, energy markets will likely remain volatile,” she added.

The White House on Wednesday responded to the rising oil price by saying it was suspending the Jones Act, a 1920 law that says only American-made ships can be used to transport goods between US ports.

US Press Secretary Karoline Leavitt said the 60-day waiver of the rules, which are intended to boost shipbuilding, will allow “vital resources like oil, natural gas, fertilizer, and coal to flow freely” as non-American-made ships can now be used.

However, maritime groups in the US said the effect would be minimal, noting that oil prices, not shipping costs, are behind rising prices at the pump.

Experts say earlier efforts by world leaders to ease price pressures, including an unprecedented release of oil reserves, have done little to reduce oil prices.

Meanwhile, Iran has also suspended the flow of gas to Iraq to shore up domestic supplies, a senior Iraqi official told Reuters.

The vast majority of Iran’s gas supply 94 per cent is used domestically, according to data from the Gas Exporting Countries Forum.

Foreign News

Senate Demands Compulsory Screening of Foreign Arrivals

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By Eze Okechukwu, Abuja

The Senate yesterday ordered mandatory health screening for every international passenger arriving Nigeria airports, seaports, land borders as Ebola resurfaces in the Democratic Republic of Congo with a scare case reported in the FCT.

The resolution followed an urgent motion by Senator Francis Fadahunsi, who warned that with Lassa fever already ravaging states, Nigeria cannot afford another outbreak.

“Protecting our entry points is far cheaper than managing Ebola,” Fadahunsi told the chamber.

Lawmakers insisted screening must be total and indiscriminate — no exemptions based on nationality or departure country because infected travellers can transit through safe-listed nations.

Senator Diket Plang raised the stakes further, demanding immediate funding for NCDC and Port Health Services, including release of withheld funds and emergency budget.

Senate President Godswill Akpabio said the Federal Government has started releasing Ebola response funds but ordered relevant committees to track every kobo.

“Ascertain whether the funds were released and judiciously utilised. Any outstanding debt must be released by the Finance Ministry without delay,” Akpabio directed.

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Dozens of Gold Prospectors Kill in Strikes on Egypt-Sudan Border

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At least 72 civilians who had been prospecting for gold in a border region of Sudan have been killed in air strikes, a regional rights group said.

Emergency Lawyers, based in the Sudanese capital, Khartoum, said jets targeted the so-called artisanal miners at a popular gold mining site on Saturday.

Neither the Egyptian government nor the de facto Sudanese authorities have so far commented.

Cairo has previously faced accusations of deadly strikes on gold prospectors as part of a crackdown on illicit activity along its southern border.

Emergency Lawyers noted the previous alleged attacks and said they represented not only a violation of Sudan’s sovereign territory but demonstrated the government’s lack of control over the region.

“The deliberate targeting of unarmed civilians violates international humanitarian law and the right to life,” it said in a statement on Sunday. “These acts may constitute war crimes.”

It noted that its death toll was provisional and could rise.

The Paris-based Sudan Tribune reported that the death toll could far exceed the number reported by Emergency Lawyers, citing a survivor of Saturday’s attack who said many more people had been injured.

Eyewitnesses said the attack began around 06:00 local time (04:00 GMT), with the aircraft firing more than five missiles directly at the miners’ camps, destroying them and excavation pits with people still inside, the newspaper wrote.

The Sudan Tribune reported claims in June that Egyptian forces had used drones and artillery to target artisanal mining sites in the same region, killing several, after sporadic incidents of Egyptian border guards of burning equipment, torching temporary shelters, and firing live ammunition to disperse mine workers.

Days later, Egypt’s border agency announced that it and the military had begun a sweeping security campaign along the border to foil illegal migration, drug smuggling and illegal mining.

At the same time, Sudan’s de facto leader announced an investigation into the alleged strikes, which were said to have killed dozens.

Gold lies at the core of the border tensions.

Sudan’s ongoing civil war has led to a surge in artisanal mining – and often risky practice conducted by civilians with rudimentary tools and without official permission – particularly in remote areas near its borders.

Gold-rich areas lie along porous borders in terrain historically associated with cross-border smuggling routes, with artisanally mined gold potentially feeding into those channels.

Egypt’s border force said in June that it had seized 86 tonnes of gold ore along with amateur prospecting equipment.

Artisanal mining has also reportedly continued in Sudan’s conflict zones and smuggled gold may be a source of income for armed insurgent groups.

This has raised concerns of illicit Sudanese gold undermining the legitimate Egyptian gold market.

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Foreign News

German Jets Arrives Italy for Multinational NATO Exercise

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Several German fighter jets will take part in the Northern Atlantic Treaty Organisation (NATO) annual nuclear defence exercise this week as troops from 17 countries take part in the Steadfast Noon drill.

The German Air Force said three Tornado jets will take part in the exercise hosted by Italy, which starts Tuesday and runs for about a week and a half.

The jets are normally stationed in Büchel in the German state of Rhineland-Palatinate.

NATO has not revealed the exercise scenario but said its scale would be comparable to last year’s drill, which involved around 2,000 personnel and more than 70 aircraft.

Last week, NATO’s head of nuclear policy, Nassima Barrows, said the exercise was designed to demonstrate the alliance’s readiness and ability to defend its territory.

No real nuclear weapons will be used, she added.

NATO said the exercise was not linked to current events or directed at any specific country.

Military experts say the drills, held regularly in October, include practising the safe transport of weapons from underground storage facilities to aircraft and mounting them on fighter jets.

Only practice bombs without real nuclear warheads are used during the drills.

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