France’s TotalEnergies has announced that it has halted or is in the process of halting production in Qatar, Iraq, and offshore assets in the UAE. According to the company’s estimates, these assets account for about 15% of its total production. This is stated in TotalEnergies’ statement on its investor page.
The company clarified that onshore production in the UAE is not affected by the conflict. Its volume is about 210,000 barrels of oil equivalent per day in TotalEnergies’ share. At the same time, 15% of the volume in the Middle East accounts for about 10% of the upstream segment’s cash flow, as local assets are subject to higher taxes and generate less cash flow per barrel than the group’s portfolio average.
The company also said that rising oil prices could compensate for the decline in volumes. According to TotalEnergies’ estimates, an $8 per barrel increase in the price of Brent is enough to offset the expected 2026 cash flow from assets in Iraq, Qatar, and offshore UAE at a price of $60 per barrel. At the same time, operations at the SATORP oil refinery in Saudi Arabia continue as usual and supply the kingdom’s domestic market.
The US and Qatar are negotiating the possible purchase of Ukrainian interceptor drones designed to destroy Shahed-type strike UAVs, amid growing interest among allies in cheaper air defense systems, Reuters reports.
According to the agency, the talks concern, in particular, SkyFall’s P1-SUN interceptor. A company representative told Reuters that deliveries are only possible with the “green light” from the Ukrainian government and on condition that the export does not reduce Ukraine’s ability to defend itself.
Reuters notes that SkyFall’s production capacity allows it to produce up to 50,000 interceptors per month, and potential exports without harming Ukraine’s needs are estimated at 5,000-10,000 units.
The effectiveness of this class of air defense systems is confirmed by Ukrainian statistics: according to the Ukrainian military, in February, 70% of drones shot down in and around Kyiv were destroyed by interceptor drones.
The cost of interceptors is significantly lower than traditional air defense systems. Reuters reports that SkyFall sells the P1-SUN to the Ukrainian military for approximately $1,000 (depending on the configuration), while PAC-3 missiles for the Patriot system can cost up to $4 million per unit.
The Israel Defense Forces (IDF) and the country’s security services announced a targeted strike against the leadership of the Hamas movement in the Qatari capital, Doha. The statement notes that the figures who were eliminated had coordinated the organization’s activities for many years and were responsible for the attack on October 7, 2023. The Qatari Foreign Ministry confirmed the strike and called it a “cowardly attack,” stressing that the attack took place in residential areas and poses a threat to the safety of the country’s citizens.
The incident could be a turning point in regional dynamics:
Israel-Qatar relations. Doha has traditionally acted as a mediator between Israel and Hamas and has played a key role in humanitarian negotiations. A direct strike on Qatari territory could freeze these channels and lead to increased tensions.
The position of the US. Qatar is a strategic ally of Washington, and one of the largest American military bases in the Middle East (Al Udeid) is located on its territory. The US reaction will be decisive: the balance between supporting Israel and maintaining relations with Doha will require a delicate diplomatic line from the White House.
Regional escalation. The Qatari Foreign Ministry has already condemned the strike. Analysts do not rule out the consolidation of a number of Arab countries against Israel in the diplomatic arena, which could complicate US plans to create new security alliances in the region.
Economic aspect: the oil market
Qatar is the world’s largest exporter of liquefied natural gas (LNG) and a major player in the oil market. Any deterioration in security in the country or the risk of Qatar being drawn into direct conflict is immediately perceived by the market as a signal of potential supply disruptions.
Price reaction. Traditionally, escalation in the Middle East leads to higher oil prices due to the risk premium. Even in the absence of physical disruptions, traders factor the likelihood of the conflict spreading into the price.
Long-term prospects. If Qatar’s diplomatic isolation intensifies, it could change LNG supply routes to Europe and Asia, strengthening the position of other suppliers (such as the US or Australia).
Israel’s strike against Hamas leaders in Qatar opens a new level of confrontation that could have far-reaching consequences. In addition to the military and political components, the incident could affect global energy, increasing volatility in oil and gas markets. In the short term, oil prices can be expected to rise due to the “risk premium,” and in the medium term, diplomatic and trade alliances in the region could be restructured.
Due to the escalation of the conflict in the Middle East, particularly following US strikes on Iranian targets, the authorities of Qatar, Saudi Arabia, and the UAE have temporarily closed their airspace to civilian aircraft. This has led to widespread flight cancellations and diversions by major international airlines.
Qatar closed its airspace on June 23. About 100 flights to Hamad Airport (Doha) were rerouted via Saudi Arabia and Egypt, which lengthened flight times and increased fuel consumption and operating costs.
The UAE (Dubai and Abu Dhabi) also suspended the arrival and departure of all civilian aircraft, which are forced to turn back before entering the country’s airspace.
The states took preventive measures due to the threat of strikes against American and Western targets in the region. International airlines — Singapore Airlines, British Airways, Air France-KLM, American Airlines, United Airlines, and Air Canada — have suspended or changed their routes to these destinations. Flight routes are now being rerouted via the Caspian Sea and Egypt, which will significantly lengthen flights and increase their cost.
The US Air Force is expected to be active in the skies over the Persian Gulf. US military aircraft will participate in repelling Iranian strikes on American bases and allied facilities in the region. No official announcement has been made yet on how many flights have been canceled, but the situation has already caused serious disruptions to air traffic. For passengers, this means delays, ticket cancellations, and longer routes. The aviation industry is preparing for higher costs and fewer flights through one of the world’s key transit hubs.
Qatar will allocate $100 million to Ukraine for rehabilitation in the field of medical care, education, humanitarian demining and other important social and humanitarian projects, Qatar’s Prime Minister and Foreign Minister Sheikh Mohammad bin Abdulrahman bin Jassim Al-Thani said during a meeting with Ukrainian Prime Minister Denis Shmygal on Friday.
“During the meeting, we also noted the importance of resuming the work of the Black Sea Grain Initiative and the need to continue the implementation of the Grain from Ukraine initiative.” We discussed in detail the Formula of Peace initiated by the President of Ukraine Volodymyr Zelensky. Thanks to Qatar for its readiness to make mediation efforts to return Ukrainian children, whom Russia illegally exported and continues to hold on its territory,” Shmygal wrote in his Telegram channel.
The parties also agreed to work closely within the framework of the Joint Intergovernmental Commission on Economic, Trade and Technical Cooperation.
“As well as to create other specialized working groups and commissions to work out issues in different spheres: from high technology and digitalization to the supply of drinking water in those regions of Ukraine where it is needed,” Shmygal added.
The Qatari authorities have updated the rules of entry for foreign tourists – from February 1, 2023, travelers will have to show local medical insurance to enter the country.
“According to information, from February 1, 2023, all tourists coming to Qatar must have a health insurance policy issued by health insurance companies registered with the Ministry of Health of Qatar (MOPH Qatar). The insurance is issued for 30 days, regardless of the duration of the vacation, its cost is 50 Qatari rials. It only covers emergency services and accidents,” the statement said.
“Host companies recommend purchasing insurance in advance to avoid delays upon arrival in Qatar. It is reported that tourists can buy the necessary insurance online (on the website of the Qatar Ministry of Health). Insurance can also be purchased upon arrival at Hamad International Airport in Doha,” the statement said.
