Global energy markets were jolted by Iran's attack on a major Qatar LNG facility, causing sharp rises in oil and European gas prices. Brent crude climbed 3.8% to settle at $107.38 per barrel, while Europe's benchmark gas prices jumped around 6%.
On Wednesday, Iran struck Qatar's Ras Laffan Industrial City, the key energy hub hosting the world's largest LNG export facility. Authorities reported “extensive damage” to the site, sparking concerns over LNG shipment continuity and long-term production capacity. Qatar halted LNG output at Ras Laffan following the attack, adding to global gas market supply pressures. The strike responds to prior attacks on Iranian facilities, including the massive South Pars gas field. Tehran has expanded its list of potential targets to energy sites in Saudi Arabia, the UAE, and Qatar, such as the UAE’s Al Hosn field. Production cuts and shutdowns have been noted across major producers like Saudi Arabia, the UAE, Kuwait, and Iraq. Disruptions extend further: Iran halted gas flows to Iraq, while Turkey, reliant on Iran for over 10% of its gas imports, may need extra spot-market LNG cargoes. The incident signals a broadening conflict into energy infrastructure, with risks to key routes like the Strait of Hormuz heightening fears of sustained supply issues and price volatility.
