TotalEnergies Shuts 15% of Oil and Gas Output Amid Middle East Conflict

French oil and gas giant TotalEnergies announced on Thursday that it has shut down around 15 percent of its global oil and gas production due to ongoing conflict in the Middle East. The affected operations include assets in Qatar, Iraq, and UAE offshore, reflecting the escalating regional tensions.

Rising Oil Prices Offset Production Losses

Despite the shutdown, TotalEnergies said soaring Brent crude prices are expected to more than compensate for the loss in revenue. The company stated that an $8 per barrel increase from the $60 baseline price would offset the anticipated 2026 cash flow from the affected Middle East assets.

Brent crude surged past $100 per barrel on Thursday, up nearly two-thirds from the start of the year and about 38 percent higher than pre-conflict levels.

Middle East Conflict Disrupts Global Energy Supply

The spike in oil prices follows the outbreak of hostilities on February 28, when the United States and Israel launched airstrikes against Iran. Retaliatory strikes by Tehran on maritime traffic in the Strait of Hormuz—a key corridor for around a fifth of the world’s oil and liquefied natural gas (LNG) shipments—have further tightened supply.

TotalEnergies, the world’s third-largest LNG producer, also maintains operations in renewable energy and oil, highlighting the broad impact of regional instability on global energy markets.

The company stressed its commitment to monitoring the situation closely while maintaining strategic reserves to mitigate disruptions.