Global gas prices spike after Qatar halts LNG production

European gas prices surged after Qatar shut down liquefied natural gas production at the world’s largest export facility following an Iranian drone attack, rattling global energy markets, Bloomberg writes. 

QatarEnergy’s Ras Laffan plant accounts for roughly one-fifth of global LNG supply, and the unprecedented halt has heightened concerns about energy security.

Benchmark Dutch front-month futures jumped as much as 46%, hitting their highest level in a year, as traders weighed the duration of the disruption. Tanker traffic through the Strait of Hormuz—a chokepoint for about 20% of global LNG shipments—has slowed sharply, creating bottlenecks and compounding supply risks.

Europe is particularly vulnerable, with storage inventories already low and heavy LNG imports needed this summer to prepare for winter. Analysts warn that if the shutdown or shipping disruptions persist for weeks, prices could climb significantly higher, intensifying pressure on industries, utilities and consumers worldwide.

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