Israel-Iran Conflict: QatarEnergy Halts LNG, Downstream Production

Gold and silver exchange-traded funds (ETFs) surged at the opening bell on March 2 as investors shifted to safe-haven assets following the US–Israel strikes on Iran, reported Mint.

The escalation has widened the West Asia conflict, prompting heightened geopolitical uncertainty. Analysts expect volatility through the session, with fresh inflows into precious metals likely as global equity markets face pressure amid rising risk aversion and concerns over further regional destabilisation.

The US dollar hovered near a more than five-week high on March 2, supported by firm demand and cautious investor sentiment amid escalating geopolitical tensions.

The greenback strengthened as markets turned risk-averse, with investors seeking safety in the world’s reserve currency. Analysts noted that continued uncertainty in West Asia and volatility across global markets have underpinned the dollar’s recent gains, even as traders assess potential impacts on inflation, energy prices and broader financial stability

Gold prices extended gains for a fifth straight session on March 3 as escalating conflict in the Middle East pushed investors toward safe-haven assets, reported Reuters.

Spot gold rose 0.7% at $5,362.90 per ounce, as of 0452 GMT amid investor concerns over the widening war following US–Israel strikes on Iran. Heightened geopolitical uncertainty supported bullion prices, with traders seeking refuge in safe assets. The rally comes as markets remain cautious, with global tensions and potential supply disruptions keeping investors on edge.

Other precious metals also traded higher on Tuesday. Spot platinum rose 0.6% to $2,316.50 per ounce, while palladium advanced 1.6% to $1,795.08, reported Mint. The gains come amid broader strength across metals markets as investors track geopolitical developments and commodity price movements in a volatile trading environment.

A sustained disruption in oil and gas supplies from the Middle East due to a prolonged war with Iran could trigger a sharp spike in inflation and a significant drop in euro zone output, European Central Bank (ECB) Chief Economist Philip Lane told the Financial Times.

He said the scale of the shock would depend on the breadth and duration of the conflict. Citing a 2023 ECB analysis, Lane noted that a persistent fall in energy supplies and regional economic disruptions could lead to energy-driven inflation and weaker growth across the bloc.

A stronger US dollar generally makes dollar-denominated assets such as bullion more expensive for investors holding other currencies, however, the inverse relationship does not always hold, reported Mint, citing Reuters.

In times of elevated uncertainty, including geopolitical tensions and wider market volatility, investors tend to move into both the dollar and gold simultaneously, treating them as protective assets despite their typical negative correlation.

In Washington on March 2, US President Donald Trump said that the United States has the capability to continue military operations against Iran well beyond the initially projected four-to-five-week timeframe.

Speaking in Washington at his first public appearance since the US–Israeli airstrikes began, Trump said the campaign would last “whatever it takes”. Meanwhile, Secretary of State Marco Rubio told reporters on Capitol Hill that the hardest US military strikes are yet to come, signalling a possible intensification of operations, reported The New York Times.

Ponmudi R, CEO of Enrich Money, told Mint that gold prices are holding firmly above key moving averages near the prior all-time high resistance zone, signaling strengthening momentum.

He noted that COMEX Gold is trading in the $5,300–$5,500 range after recent consolidation, with strong buying interest seen in the $5,100–$5,200 support band. A sustained move above the $5,500–$5,600 zone could pave the way for fresh record highs, he added.

Israeli Prime Minister Benjamin Netanyahu said the war against Iran would not take years and would not be endless, reported Reuters. Speaking to Fox News, he described the conflict as potentially quick and decisive. As fighting entered its fourth day, explosions were reported in Tel Aviv amid Iranian missile attacks. Israel struck Iran’s state broadcaster complex in Tehran and Hezbollah targets in Lebanon, while drones reportedly hit the US embassy in Riyadh, causing minor damage, Saudi authorities said.

Iran’s decision to shut the Strait of Hormuz has heightened concerns over global energy supplies and trade stability, as the strategic waterway handles a significant share of the world’s oil and gas shipments.

The move comes amid escalating conflict in West Asia, amplifying fears of supply disruptions, rising freight costs, and renewed inflationary pressures across major economies. Markets remain on edge as governments and businesses assess the fallout from potential prolonged disruptions to one of the world’s most critical energy chokepoints.

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Rising tensions in West Asia have sparked concerns over a potential increase in petrol prices in India, as global crude benchmarks react to the escalating conflict.

With India importing a significant share of its oil requirements, any sustained spike in crude prices could have implications for fuel costs and inflation. The report examines how global supply disruptions, shipping risks and geopolitical uncertainty may influence domestic retail prices in the coming weeks.

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Retail petrol and diesel prices in India are unlikely to rise in the near term despite global crude oil prices spiking close to $80 per barrel, reported PTI. Sources said that state-run fuel retailers, including IOC, BPCL and HPCL, have built up margins over time, helping cushion consumers from immediate price adjustments. The government’s calibrated pricing policy has kept retail fuel rates unchanged since April 2022, even amid sharp international price movements, as authorities monitor the evolving situation and aim to shield domestic consumers.

Amid heightened tensions in West Asia, Air India on March 3 received passengers and crew arriving from Dubai at Indira Gandhi International Airport in New Delhi, reported CNBC TV18.

The flight marked the first international arrival by an Indian carrier into the national capital today, carrying 149 passengers and eight operating crew members.

The gold-silver ratio is currently hovering around 60–65 times and is expected to remain at these levels for a longer period due to persistent tight physical market conditions, reported Mint.

Loud explosions shook Iran’s capital on March 3 as the war involving Iran, the United States and Israel entered its fourth day, AFP journalists reported.

Blasts were heard across northern Tehran, though it was not immediately clear what had been struck. Iranian media also reported explosions in Karaj, located just outside Tehran, as well as in the central city of Isfahan. The fresh strikes signal a widening scope of hostilities, with multiple urban centres reporting impact as tensions continue to escalate.

US President Donald Trump said it was “very sad to see” that the long-standing relationship between the United States and Britain was “not what it was,” telling The Sun newspaper that UK Prime Minister Keir Starmer’s initial hesitation to support military action against Iran had strained ties.

Trump contrasted Britain’s stance with what he described as stronger support from other European allies. Starmer later allowed the use of British bases for defensive operations against Iranian missiles but defended his decisions as being rooted in national interest and legal clarity.

The Israeli military has prepared for a campaign against Iran that could last several weeks but is unlikely to involve ground forces, a military spokesperson told reporters on March 3, according to Reuters.

Lieutenant Colonel Nadav Shoshani said the “general scope” of operations was weeks, though timelines could change depending on developments, adding that progress so far had been positive. He described a ground deployment as “not very likely at the moment.” Israel and the United States have carried out air strikes since Saturday, prompting Iranian retaliation, as Prime Minister Benjamin Netanyahu said the conflict could take “some time.”

Over 700 tankers are stranded on either side of the Strait of Hormuz as heightened security fears have effectively paralysed shipping through the strategic oil transit route, reported Mint.

Following US–Israeli strikes on Iran, ship operators have halted crossings amid rising risks and soaring insurance costs, leading to a sharp decline in maritime activity. The chokepoint, which normally handles about 20mn barrels of oil and products daily, has seen near-standstill traffic, prompting concerns over supply disruptions and broader market impacts.

Airstrikes targeting a southeastern Iranian air base killed at least 13 Iranian troops at the Kerman Air Base, local media reported, AFP journalists said.

The base, known for housing military helicopters, was struck amid ongoing hostilities between Iran and US-Israeli forces in the widening conflict. Details on who carried out the strikes or further military intent were not immediately clear.

Sri Lankan President Anura Kumara Dissanayake on Tuesday urged all parties involved in the ongoing West Asia conflict to commit to a swift and peaceful resolution, highlighting the conflict's repercussions on the global economy.

President Dissanayake made these remarks while addressing the Parliament.

"We hope all parties would commit to a peaceful resolution of it as it tends to impact the global economy, including Sri Lanka," he said.

“It is beyond our control, but we have to set in contingency plans to face the emerging situation," Dissanayake said.

Pakistan’s Defence Minister Khawaja Muhammad Asif described Zionism as a “threat to humanity,” warning that the ongoing Iran–Israel war could jeopardise Pakistan’s security, reported CNBC TV18 citing his social media post.

He claimed that despite Iran’s readiness for a deal, conflict was imposed on Tehran and suggested that extending Israeli influence toward Pakistan’s borders was part of a broader agenda. Asif urged national unity and underscored the importance of safeguarding Pakistan’s sovereignty while praying for Palestine’s freedom amid regional instability.

The death toll from US‑Israel strikes across Iran has risen to 787, the Iranian Red Crescent reported, state media said, according to Al Jazeera.

Russian Foreign Minister Sergey Lavrov stated that Moscow has not observed any evidence of Iran developing nuclear weapons, even as the ongoing conflict in the Middle East intensifies, reported Economic Times.

Lavrov described the situation as "essentially a war". The remarks come amid US concerns over Iran’s nuclear programme, with President Donald Trump citing it as a longstanding source of regional instability, saying the threat has hindered peace for years.

The Israel Air Force wrote in a post on X that it carried out overnight strikes on key Iranian leadership compounds in central Tehran, targeting security regime buildings under precise guidance from Military Intelligence.

The attacks hit the Presidential Office, the Supreme National Security Council, the highest decision-making forum and the military officer training institution, along with other critical infrastructure. Israel stated that the operations, based on prolonged intelligence gathering, were aimed at disrupting the Iranian regime’s command and control systems and weakening its operational continuity.

The Indian rupee weakened against the US dollar on the back of escalating tensions in West Asia, as investors weighed the potential impact of the conflict on oil prices and foreign capital flows.

Rising crude prices, supply chain concerns, and heightened geopolitical uncertainty have contributed to the currency’s decline. Sustained conflict in the region could affect the rupee’s performance, with volatility likely to continue as global markets respond to ongoing developments.

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Only three tankers crossed the Strait of Hormuz recently, as shipping flows through the critical oil transit route plunged 86%.

The dramatic drop reflects increased security fears following the escalation of conflict in West Asia. Industry sources say the sharp decline in tanker movements underscores how the crisis is disrupting global oil logistics and forcing shipping firms to reroute or delay voyages. The collapse in traffic through one of the world’s busiest chokepoints highlights the tough choices facing energy markets amid prolonged regional tensions.

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India holds about 100mn barrels of commercial crude stocks across storage tanks, strategic reserves and tankers en route, enough to cover roughly 40–45 days of demand if flows through the Strait of Hormuz are disrupted, reported PTI citing Kpler data.

Qatar’s foreign ministry said it was not notified in advance by Iran about the incoming missile attacks, reported Al Jazeera.

“The targets are not just military, but all Qatari territory,” the ministry added, clarifying that it currently has no information on Mossad cells in the country. Iranian jets downed yesterday had entered Qatari airspace and were warned, the spokesperson said. Qatar also confirmed that its stockpile of interception missiles remains sufficient to handle ongoing threats.

Indian companies on March 3 reduced natural gas supplies to industries in anticipation of tighter supply from the Middle East, following Qatar’s halt in LNG production, four industry sources told Reuters.

The move comes as disruptions in key gas-producing regions raise concerns over domestic supply and potential ripple effects on industrial operations.

The US has successfully deployed its low-cost LUCAS suicide drone in combat in Iran, just eight months after its Pentagon unveiling, reported Reuters.

Developed by Arizona-based SpektreWorks, the drones are modelled after Iran-made Shahed systems. The deployment underscores Washington’s push to accelerate weapons programmes amid increasing drone competition in the defence sector.

US stock index futures slid sharply on March 3 as the widening conflict in the Middle East stoked worries about a prolonged regional war, reported Reuters.

Contracts on the S&P 500 and the Dow Jones Industrial Average both fell about 1.7%, while Nasdaq 100 futures led the retreat with a 2.3% drop as oil prices continued to rally on concerns over potential supply disruptions. The sell‑off reflects heightened risk aversion among investors amid geopolitical uncertainty and its possible impact on markets and inflation.

Oman on March 3 intercepted two drones in the southern governorate of Dhofar, while a third drone crashed near Salalah Port, reported Reuters citing the state news agency.

Authorities confirmed that no injuries were reported in the incidents and investigations into the origin and intent of the drones are ongoing.

Iran on March 3 called on the United Nations Security Council to step in and halt its ongoing conflict with Israel and the United States, AFP reported.

Foreign ministry spokesman Esmaeil Baqaei said the council has both the authority and responsibility to act, adding that “there is no obstacle to its action except its own will”. His comments come as hostilities in the region continue to escalate, with tensions mounting between the Islamic Republic, Israel and the US.

Russian President Vladimir Putin will convey Arab leaders’ concerns to Iran regarding attacks on regional oil infrastructure, the Kremlin said on March 3, reported Reuters.

The announcement comes as the conflict involving Iran continues to widen. Kremlin spokesperson Dmitry Peskov noted that Putin held multiple phone calls with leaders from four Arab Gulf states on March 2, using Moscow’s strategic ties with Tehran to help ease tensions.

“Putin will certainly make every effort to contribute to at least a slight easing of tensions,” Peskov added, emphasising the focus on communicating concerns about strikes on regional infrastructure.

Further to the decision by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy is stopping the production of some downstream products in the State of Qatar, including urea, polymers, methanol, aluminum and other products, reported ANI.

QatarEnergy further stated that the company values its relationships with all of its stakeholders and will continue to communicate the latest available information.