Global gas prices surge after Qatar halts LNG output following attacks
Production shutdown at QatarEnergy and disruptions in Saudi Arabia fuel sharp rises in gas and oil markets.
QatarEnergy has suspended production of liquefied natural gas (LNG), triggering a sharp increase in gas prices across Europe and Asia. The company confirmed that operations at its Ras Laffan and Mesaieed industrial sites were halted following the attacks, though no casualties were reported.
The announcement prompted immediate market reaction. Benchmark Dutch and British wholesale gas prices climbed nearly 50%, while Asian LNG benchmarks rose close to 39%. The incident adds pressure to already volatile global energy markets, which have been strained by rising geopolitical tensions in the Gulf.
Qatar’s Defence Ministry said two drones targeted energy infrastructure, damaging a water tank at a power plant in Mesaieed and part of a QatarEnergy facility in Ras Laffan.
In Saudi Arabia, the Defence Ministry reported that two drones attempted to strike the Ras Tanura oil refinery, one of the world’s largest processing sites. A small fire broke out after the drones were intercepted, and the facility sustained limited damage. Operations at some refinery units were paused as a precaution, though officials said domestic fuel supply would not be affected.
The attacks coincide with growing disruptions around the Strait of Hormuz, a critical shipping route that handles about a fifth of global seaborne oil and most Qatari gas exports. Tanker congestion and fears of further escalation pushed oil prices to their highest levels since January 2025, with intraday gains of up to 13%.
