Qatar suspends liquefied natural gas production after Iranian attacks, causing European gas prices to surge by 45% and raising fears of a wider conflict.
DOHA: Qatar suspended all liquefied natural gas production on Monday following Iranian strikes on its key energy facilities, triggering a massive surge in global prices and fears of a wider military escalation in the Gulf.
The shock shutdown by QatarEnergy, one of the world’s largest LNG producers, came after Iranian drones targeted its facilities at Ras Laffan Industrial City and Mesaieed Industrial City.
A company statement confirmed the cessation of LNG and associated product production due to the military attacks on its operating sites.
European benchmark gas prices, represented by the Dutch TTF contract, jumped almost 45% to more than 46 euros in response to the supply disruption.
The attacks also hit a major Saudi oil refinery, with two drone strikes forcing Saudi Aramco’s Ras Tanura facility into a partial shutdown.
A source close to the Saudi government warned that a concerted Iranian attack on oil facilities could trigger a direct military response, with Saudi Arabia prepared to target Iranian oil installations in retaliation.
The Saudi army has reportedly raised its readiness level to full alert, according to a separate source.
These strikes mark the third day of Iranian bombardment targeting America’s Gulf allies, following the killing of Iran’s supreme leader in US-Israeli strikes.
Security analyst Anna Jacobs described the escalating conflict as a nightmare scenario for the wealthy Gulf region, obliterating its image as a safe haven.
Kuwait suffered significant impacts, with 19 people injured and shrapnel falling at the Mina Al Ahmadi refinery, though production there was not disrupted.
Smoke was seen pouring from the US embassy in Kuwait City, while a friendly-fire incident saw Kuwaiti forces mistakenly shoot down three US F-15E Strike Eagle fighter jets, with their crews parachuting to safety.
Bahrain recorded its first fatality when debris from an intercepted missile sparked a fire on a ship in Salman port, killing one Asian worker and seriously injuring two others.
The total death toll from the strikes across the Gulf has reached five, with attacks hitting ports, airports, residential buildings, hotels, and military sites.
