Middle East tension shakes oil and gas markets: Fuel prices on the rise
The sharp rise in oil and natural gas prices following US and Israeli attacks targeting energy facilities in Iran and subsequent retaliations in the region has reflected as a new wave of price hikes for fuel in Turkey.
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Oil markets have shown a historic increase alongside the military activity in the Middle East. Following the attacks by the US and Israel on key energy infrastructure in Iran, the price of a barrel of Brent crude oil rose by over 8 percent, reaching the 116 dollar level. At the same time, West Texas Intermediate crude also rose to the 96 dollar band. It was not just oil; natural gas prices in European markets also drew attention with a jump of up to 26 percent. At the Netherlands-based TTF natural gas trading hub, April futures contracts climbed to 72 euros per megawatt-hour.
These sharp increases in global markets have reflected as price hikes for fuel in Turkey. According to information obtained from industry sources, a new price hike of 5 lira and 18 kurus will be applied to diesel prices. With this increase, the liter price of diesel is expected to approach the 75 TL threshold. Experts state that due to rising oil prices and exchange rates, further hikes in fuel prices may come to the agenda in the coming days.
ENERGY INFRASTRUCTURE UNDER ATTACK IN IRAN AND QATAR
One of the main reasons for the rising tension in the Middle East is the attacks on energy infrastructure. Israel, along with the US, targeted refineries at Iran's world-renowned South Pars Gas Field. It is stated that this field meets approximately 70 percent of Iran's total gas production. It was also reported that Iranian missiles caused widespread destruction in the Ras Laffan region of Qatar, where strategic LNG processing facilities are located.
The attacks on refineries and liquefied natural gas hubs in the region have not only put pressure on oil and natural gas supply but have also led to a new fluctuation in global energy markets. Saudi Arabia announced that four ballistic missiles aimed at the capital, Riyadh, were destroyed and a drone attack on a natural gas facility was thwarted. Kuwait announced that a drone attack took place at the Mina Abdullah Refinery and that the resulting fire was brought under control.
Industry analysts state that these developments have plunged both crude oil supply and natural gas trade into uncertainty. It is expressed that in the region where tension is escalating, the fluctuation in fuel prices may continue if there is another attack on energy infrastructure.
US President Donald Trump, in his statement, said, "Unless Iran decides to attack Qatar, no other attacks will be carried out by Israel against the South Pars gas field. If such a situation occurs, the US, with or without Israel's help or approval, will blow up the entire South Pars gas field with a power and violence that Iran has never seen or witnessed before."
NATURAL GAS PRICES PEAK IN EUROPE
Natural gas markets have also moved in tandem with oil. Amid concerns over supply restrictions from the Middle East, the price of April-delivery contracts on the TTF virtual natural gas exchange in Europe exceeded 68 euros per megawatt-hour. The targeting of gas fields in Iran and Qatar, in particular, has created significant market anxiety.
While the Qatari Ministry of Foreign Affairs described the developments as a "dangerous and irresponsible step," experts believe that attacks on regional energy infrastructure threaten global energy supply chains.
NEW WAVE OF FUEL HIKES: CURRENT PRICES
In Turkey, fuel prices have been changing frequently recently due to the rise in exchange rates and raw material costs. According to the latest updates, current prices in major cities are as follows:
Istanbul European Side - Gasoline: 61.97 TL/liter - Diesel: 65.91 TL/liter - LPG: 30.29 TL/liter
Istanbul Asian Side - Gasoline: 61.83 TL/liter - Diesel: 65.77 TL/liter - LPG: 29.89 TL/liter
Ankara - Gasoline: 62.94 TL/liter - Diesel: 67.03 TL/liter - LPG: 30.37 TL/liter
Izmir - Gasoline: 63.22 TL/liter - Diesel: 67.31 TL/liter - LPG: 30.29 TL/liter
In addition to these prices, a further increase of 5.18 TL per liter will be applied to diesel. It is estimated that this increase will impact costs, particularly in the transportation and manufacturing sectors, and could indirectly trigger new price hikes for other consumer goods.
FURTHER INCREASES EXPECTED
Economists believe that ongoing geopolitical risks and volatility in foreign exchange rates will continue to keep oil and natural gas costs high. It is emphasized that a new wave of price hikes in fuel markets is imminent.