Drone strikes originating from Iran compelled Qatar to suspend operations on Monday, sending shockwaves through global energy markets and stoking concerns over supply interruptions as Tehran ramped up its attacks on regional infrastructure.
QatarEnergy— the state-owned energy behemoth and among the world’s top LNG producers— paused operations at two facilities following drone strikes from Iran that targeted the sites, per multiple reports.
Qatar’s Ministry of Defense also stated in a release that attacks had taken place in the country, though no casualties were reported.
The strikes additionally targeted a water tank at a power plant in Mesaieed and a major energy facility in Ras Laffan.
Qatar’s Ras Laffan complex ranks as the world’s biggest LNG export facility, cementing its status as one of the globe’s most vital energy hubs.
Roughly 20% of global LNG trade passed through the Gulf in 2024, mostly originating from Qatar, as per the International Energy Agency.
Markets responded on Monday with energy prices spiking by the steepest margin since the 2022 energy crisis sparked by the Ukraine war, as reported by Bloomberg.
Bloomberg further noted that Dutch TTF natural gas prices climbed 50% following news of the shutdown. Other energy commodities also saw increases as traders worked to gauge the extent and duration of the disruption.
“The threat to supply security is immediate,” Simone Tagliapietra, an analyst at Bruegel, told Bloomberg. “How severe it becomes will hinge on how long the shutdown lasts, but we’ve entered a new phase.”
In Saudi Arabia, an attack sparked a fire at the kingdom’s Ras Tanura oil refinery, leading to a partial shutdown there as well.
Saudi officials have not confirmed any casualties, but the attack amplified concerns about wider instability in the Gulf’s energy corridor, per reports.