European gas prices have more than doubled after rising tensions in the Middle East disrupted energy supplies and shook global markets. The surge follows joint U.S. and Israeli strikes on Iran, which were followed by Iranian drone attacks on key energy facilities in Qatar, according to Anadolu.
Shipping traffic through the Strait of Hormuz has nearly stopped, creating a serious bottleneck in global energy trade. The narrow waterway is one of the world’s most important energy routes, carrying about 20 percent of global liquefied natural gas (LNG) exports. Almost all of Qatar’s LNG shipments pass through this channel.
After drone strikes hit facilities in Ras Laffan Industrial City and Mesaieed, QatarEnergy announced it was suspending LNG production at the affected sites due to security concerns. The company also declared force majeure, signaling that it may not be able to meet its contractual supply obligations.
The impact on markets was immediate. At the Title Transfer Facility (TTF) in the Netherlands, Europe’s main gas trading hub, April futures climbed to €65.50 per megawatt-hour. Just days earlier, prices had stood near €32. On the day alone, prices jumped roughly 47 percent.
Qatar is responsible for around 20 percent of the world’s LNG export capacity. The shutdown of its major facilities marks one of the biggest shocks to global gas markets since Russia’s invasion of Ukraine in 2022.
With the Strait of Hormuz effectively closed, Europe and Asia are now expected to compete fiercely for alternative LNG supplies, especially from the United States and Australia. Meanwhile, gas storage levels across the European Union remain near 30 percent, lower than last year, leaving the region more vulnerable.
EU energy officials are scheduled to meet to assess the crisis, as fears grow that prolonged disruption could deepen Europe’s energy challenges.
