Oil Prices Hit Two-Year High After Qatar Warns Gulf Production Could Halt Within Days

By Muhammad MubashirPublished On 07 Mar 2026

Oil prices have risen to their highest level in more than two years, after Qatar's energy minister warned he expects all oil and gas exporters in the Gulf to stop production within days.

Saad al-Kaabi told the Financial Times the conflict in the Middle East - a region which plays a key role in global energy supplies and shipping routes - could "bring down the economies of the world".

Brent crude oil rose more than 9% on Friday, topping $93 a barrel - the highest level since autumn 2023.

Rising oil prices can have wide-reaching effects, not only on how much it costs to fill up your vehicle but also on the cost of some heating, food and imported goods.

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There are warnings that if the price of oil and gas - which has also surged this week - remain high, this could fuel inflation in major world economies such as the UK and US, where it has been on a broadly downward trend.

Kaabi said oil could hit $150 a barrel if the Iran conflict continues over the coming weeks.

He told the FT: "If this war continues for a few weeks, GDP growth around the world will be impacted.

"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 can't supply."

Already consumers in the UK are seeing higher petrol and diesel prices. On Friday the RAC said petrol at UK pumps had increased by 3.7p, and diesel by 6p - reaching a 16-month high - since Saturday.

The Competition and Markets Authority, the UK's competition watchdog, says it is "closely monitoring" how petrol station prices develop.

Household energy bills could also rise, although this probably won't be felt until July as regulator Ofgem's energy price cap has already been set until then.

There have been fears the current crisis could have a similar impact to Russia's invasion of Ukraine, but so far rises in the prices of oil and gas remain below the peaks experienced in 2022.