Qatar’s energy minister is warning that the ongoing war in the Middle East could drive oil prices above $150 per barrel, a surge he says would send shockwaves through the global economy.

Saad al-Kaabi cautioned in an interview with the Financial Times that such a sharp rise in crude prices could devastate economies around the world as supply disruptions deepen and energy markets grow increasingly unstable.

The price of oil has already climbed roughly 7 percent to more than $90 per barrel after spending much of the year trading between $60 and $70. The current surge has oil on track for its largest weekly gain since 2022, with Brent crude jumping nearly 30 percent this week as fighting in the region escalates.

Al-Kaabi said the economic consequences will quickly spread if the conflict continues for an extended period.

“If this war continues for a few weeks, GDP growth around the world will be impacted,” he said. “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 cannot supply,” al-Kaabi added.

He also indicated that energy producers in the Gulf region might be forced to suspend production in certain circumstances, a move that would likely push prices even higher. Even if hostilities stop soon, he noted that restoring normal production could take weeks or even months.

The warning comes after an Iranian drone strike earlier in the week targeted Qatar’s largest liquefied natural gas facility.

The conflict, now entering its seventh day, has already sent energy markets into turmoil. Concerns intensified after Iran effectively closed the Strait of Hormuz, one of the most critical shipping lanes for oil worldwide. Approximately 21 million barrels of oil per day—about one-fifth of global oil trade—pass through that narrow waterway.

Qatar, the world’s second-largest exporter of liquefied natural gas, is also cautioning that the disruption could ripple across global gas markets.

Al-Kaabi said buyers in Asia are likely to rush to secure available supplies, a development that could push gas prices higher internationally. He also told the Times that he expects additional Gulf nations to declare force majeure in the coming days.

“In addition to energy, there will be a halt on all other trade in between the [Gulf] and the world, which will have a significant effect on the economies of the [Gulf] and all the trading partners around the world,” al-Kaabi said.

Economists say rising oil and gas prices could also reignite inflation and place new financial pressure on households already coping with high living costs.

Ruth Curtice, chief executive of the Resolution Foundation, a nonpartisan British think tank, told the financial website This Is Money that sustained increases in oil and gas prices could push inflation back up to 3 percent “by the summer.”

Helen Miller, director of the Institute for Fiscal Studies, added, “If war in the Middle East drags on, that will be unambiguously bad news for all of us.”