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Energy Prices · Geopolitics · LNG · Supply Chain
Qatar's Ras Laffan plant, the world's largest LNG export facility, has ceased production following an Iranian drone attack, triggering a dramatic surge in European gas prices.
Benchmark futures jumped over 50%, with Dutch front-month futures gaining 45% to €46.19 per megawatt-hour, marking the most significant market shock since Russia's invasion of Ukraine. This shutdown is a direct consequence of escalating conflict, initiated by a joint US-Israel strike on Iran, followed by Iranian retaliation across Gulf states.
The crisis extends beyond Qatar, as the Strait of Hormuz, a vital energy shipping route, faces severe disruptions and a withdrawal of war-risk insurance. Furthermore, Israel's temporary closure of its Leviathan gas field has prompted Egypt to seek additional LNG cargoes, intensifying global competition for supplies.
With US President Trump indicating a prolonged bombing campaign against Iran, the situation threatens global energy security, promising sustained volatility and higher gas prices worldwide.
