Ace investor Shankar Sharma has raised concerns over the unfolding Iran conflict, warning of two potential “nightmare scenarios” that could destabilize global energy markets and geopolitics. He fears the weaponization of oil could follow tactics previously used with the SWIFT system and tariffs, giving the United States unprecedented leverage over global energy. Sharma suggested that the first scenario involves Israel potentially launching nuclear strikes, allegedly with US approval, highlighting his view that the US has created a “Frankenstein” it cannot fully control. The second scenario involves oil coming under US dominance, enabling the country to use energy as a constant strategic threat, particularly over nations like India that lack the influence of China.
The concerns come after Israel’s attack on Iran’s South Pars gas field, which Trump described as a “violent lash out.” The assault caused oil prices to spike and prompted Iran to retaliate with missile strikes on Qatar and Saudi Arabia, targeting key energy infrastructure. QatarEnergy reported significant damage to the Ras Laffan Industrial City, a facility that processes about 20% of the world’s gas supply. Subsequent Iranian attacks further hit Qatar’s liquefied natural gas facilities and targeted Saudi Arabia, worsening disruptions to global energy supplies and escalating regional tensions.
Trump clarified that the United States did not have prior knowledge of Israel’s attack, and Qatar was not involved. He warned that Israel would refrain from further attacks on the South Pars field unless Iran targeted Qatar again, in which case the US would respond with overwhelming force. Sharma’s warnings underline the global economic and political risks of energy being used as a geopolitical weapon amid rising Middle East tensions.
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