Iran's attack on the world's largest liquefied natural gas export facility caused production to halt, leading to a surge of over 50% in gas prices in Europe.

After being attacked by Iranian drones, Qatar has closed down the world's largest liquefied natural gas (LNG) export facility, Ras Laffan, owned by Qatar Energy Company, causing European natural gas prices to soar by over 50% and triggering severe turbulence in the global energy market. The Ras Laffan facility accounts for approximately one-fifth of the global supply of liquefied natural gas, and this rare shutdown is seen as a major blow to global energy security. After Qatar Energy Company confirmed the production halt on Monday, European benchmark natural gas futures recorded their largest increase since the 2022 energy crisis. Meanwhile, oil tankers have almost stopped passing through the Strait of Hormuz, a key channel that transports around 20% of the world's liquefied natural gas, further exacerbating supply concerns. Analysts point out that while Asia is the main buyer of Middle Eastern liquefied natural gas, supply interruptions will intensify global competition for alternative sources and drive up gas prices worldwide, including in Europe. With current low levels of natural gas stockpiles in Europe, a substantial amount of liquefied natural gas imports will be needed this summer to replenish stocks before winter, making the market highly sensitive to supply risks. Although the intraday increase is the largest since the Russia-Ukraine conflict, as European domestic supply has not been directly affected yet, benchmark prices have only reached a one-year high, and traders are still evaluating the duration of the conflict. Sources reveal that Qatar Energy Company has declared force majeure on some contracts, but there have been no reports of severe damage to facilities at this time. Goldman Sachs predicts that if the interruptions in transportation through the Strait of Hormuz continue for a month, European natural gas prices could double. Even with increased production in the United States, it will be difficult to quickly fill the supply gap left by Qatar. Qatar Energy's Golden Pass LNG terminal expansion project in the US is expected to start in the coming weeks, but it will not reach full production until next year. Geopolitical conflicts are escalating. Israel has ordered the temporary closure of some of its natural gas production capacity, including the Leviathan gas field, its largest gas field. As a result, major importing countries like Egypt have accelerated their purchases of liquefied natural gas. If disturbances in Middle Eastern natural gas trade persist, countries like Turkey that rely on gas from Iran via pipelines may also increase their demand for spot liquefied natural gas.