NEWYou can now listen to Fox News articles!
Iranian drone strikes forced Qatar to halt liquefied natural gas (LNG) production Monday, jolting global energy markets and raising fears about supply disruptions as Tehran increased its attacks on regional infrastructure.
QatarEnergy, the state-owned giant and one of the world’s largest LNG producers, suspended operations at two facilities after drones launched from Iran hit the sites, according to reports.
Qatar’s Ministry of Defense also said in a statement, that two drones hit facilities in the country, though no casualties were reported.
The attacks also targeted a water tank at a power plant in Mesaieed and a key energy installation in Ras Laffan.
Qatar’s Ras Laffan complex is the world’s largest LNG export facility, making it one of the most critical energy hubs in the world.
About 20% of global LNG trade transited the Strait of Hormuz in 2024, primarily from Qatar, according to the U.S. Energy Information Administration.
Markets reacted Monday with Europe’s benchmark natural gas futures surging by the largest margin since the 2022 energy crisis triggered by the Ukraine war, Bloomberg reported.
GULF SHIPPING OPERATIONS GRIND TO HALT NEAR IRAN, US QUIETLY PREPARES FOR POSSIBLE STRIKE: ‘HEIGHTENED RISK’
Bloomberg also reported Dutch TTF natural gas prices rose by 50% after news of the shutdown. Asian LNG prices also recorded gains as traders tried to assess the scale and length of the disruption.
“The threat to security of supply is here and now,” Simone Tagliapietra, an analyst at Bruegel, told Bloomberg. “The extent of it will depend on the duration of the shutdown, but we are now into a new scenario.”
In Saudi Arabia, another drone attack caused a fire at the kingdom’s Ras Tanura oil refinery, forcing a partial shutdown there as well.
Saudi authorities have not reported casualties, but the attack heightened fears of broader instability in the Gulf’s energy corridor, according to reports.
Related Article
Read the full article here
