Qatar has halted its liquefied natural gas production after drone strikes by Iran targeted key energy facilities, while Saudi Arabia temporarily shut its largest oil refinery following missile attacks, raising fears of a prolonged energy crisis.
State owned QatarEnergy planned to declare force majeure on LNG shipments after drones struck the Ras Laffan industrial complex, home to gas trains and large processing units, and the Mesaieed industrial zone, which houses petrochemical and manufacturing plants. Qatar produces roughly 20 percent of global LNG, a key supply for Asian and European markets. The disruption sent European benchmark gas prices soaring, with the Dutch TTF front-month contract jumping 46 to 52 percent, the largest rise since March 2022.
Meanwhile, Saudi Aramco confirmed the temporary shutdown of the Ras Tanura refinery near Dammam after missile attacks. Although incoming drones were intercepted, debris caused a small fire. The facility produces over 500,000 barrels of crude oil daily, making it critical to Saudi energy output.
Other regional disruptions include suspended oil production in Iraqi Kurdistan, halted Israeli gas exports to Egypt, and slowed shipping through the Strait of Hormuz, a major chokepoint for one-fifth of global oil supply.
Global oil prices surged as much as 13 percent intraday to above $82 per barrel, the highest since January 2025, before easing slightly. Analysts warn that continued attacks could trigger deeper supply shocks and sustained price volatility, intensifying concerns for energy markets worldwide.
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