Global energy markets jolted on Monday after QatarEnergy suspended liquefied natural gas (LNG) production following drone strikes on its facilities, triggering a nearly 50 per cent surge in European gas prices.
In a statement, QatarEnergy said it halted LNG and associated output after military attacks targeted operations in Ras Laffan Industrial City and Mesaieed Industrial City. Qatar’s Ministry of Defence confirmed that two drones launched from Iran struck a water tank at a Mesaieed power plant and an energy facility in Ras Laffan. Authorities reported no casualties, adding that damage assessments are ongoing.
The disruption has raised concerns over global gas supplies, as Qatar is the world’s largest LNG exporter.
In a related development, Saudi Aramco temporarily suspended parts of its Ras Tanura refinery after attempted drone attacks. According to the Saudi Press Agency, two drones were intercepted, though debris sparked a small fire that caused limited damage. The 550,000-barrels-per-day refinery, located near Dammam, is a key component of Saudi Arabia’s oil infrastructure.
Tensions have also intensified around the Strait of Hormuz, a vital corridor that handles roughly a fifth of global seaborne oil and most of Qatar’s gas exports. Tanker movements have slowed amid heightened security risks.
The escalation follows retaliatory strikes by Iran after US and Israeli air raids on Iranian targets. Energy analysts warn that prolonged disruptions to LNG exports or oil shipments through Hormuz could sustain price spikes, with ripple effects on inflation, industrial output, and energy security across Europe and Asia.
