02.03.2026 16:30
In the escalating war in the Middle East, Iran's strike on the Ras Laffan LNG facility in Qatar and the disruption of tanker passages in the Strait of Hormuz have increased natural gas prices in Europe by 40%, reaching a one-year high.
As the attacks by the US and Israel on Iran and Tehran's retaliations escalate tensions in the Middle East, the economic effects of the war have sharply impacted energy markets. Disruptions to tanker transit in the Strait of Hormuz and targeting of LNG facilities in Qatar have pushed natural gas prices in Europe to a one-year high.
FACILITY PROVIDING 20% OF PRODUCTION HIT
Iran targeted the Ras Laffan LNG complex owned by QatarEnergy with two Shahed-type kamikaze drones. A fire broke out at the facility after the attack, and production was halted. In Qatar's official statement, it was reported that liquefied natural gas production was suspended after the drone struck the water tank at the energy facility.
The disruption at Ras Laffan, which accounts for approximately 20% of the world's LNG production, has put significant pressure on global supply. Iran had previously targeted the ARAMCO base in Saudi Arabia. Thus, the Ras Laffan attack became the second critical energy facility hit by Iran.
PRICES IN EUROPE AT A ONE-YEAR HIGH
The conflicts in the Middle East reducing shipments in the Strait of Hormuz and the halt of LNG flows from Qatar have led to a sharp rise in European markets. European natural gas futures contracts rose by 40% during the day, reaching 45 euros per megawatt-hour, the highest level in the past year. The increase, which was at 22% in the morning, gained momentum throughout the day. The cut in LNG supply from Qatar puts about 15% of the European Union's total LNG imports at risk, increases supply tightness in the global LNG market, and raises competition for US-sourced shipments.
GAS STOCKS AT CRITICAL LEVEL
After the attacks, LNG tanker operators also halted transits through the Strait of Hormuz. This situation has limited supply from other producers in the region. Meanwhile, gas storage levels in the European Union have fallen below 31%. This rate was at 40% during the same period last year. As the effects of the war in the Middle East on energy supply security grow, market volatility is expected to continue.