Energy Prices Spike After Qatar LNG Facility and Kuwait Refinery Hit by Middle East Strikes

Energy markets surged on Thursday morning after a series of strikes targeted critical energy infrastructure across the Middle East.

Qatar LNG Facility Under Fire

The trigger came from Qatar, where the state‑owned energy company reported “considerable damage” to the Ras Laffan liquefied natural gas (LNG) complex – the world’s largest LNG export site – following dawn missile strikes. Fires broke out but were quickly brought under control, with no casualties reported. Cooling and securing operations continue at the site.

Iranian Threats Escalate Tension

The geopolitical temperature rose further after former U.S. President Donald Trump warned that he would destroy Iran’s South Pars gas field if Tehran launched any new attack on Qatar’s gas installations. The warning amplified fears of a broader regional conflict that could choke Gulf hydrocarbon flows.

Kuwait Refinery Attacked

In Kuwait, a drone strike hit one of the nation’s main refineries operated by the national oil company, sparking a fire in a processing unit. State media confirmed the incident, noting that emergency crews were on the scene to contain the blaze.

Oil Market Reaction

Crude oil followed the same upward trajectory. Brent futures gained more than 5% as traders added a geopolitical risk premium to their pricing models. The move reflected concerns that any disruption to Gulf output would tighten global supplies.

Implications for Europe

For European markets, the episode served as a stark reminder of the region’s reliance on Gulf LNG exports. The TTF Dutch gas benchmark, Europe’s reference price, climbed 24.13% to €67.85 per MWh, after peaking above a 35% rise earlier in the session. Analysts warned that even localized attacks can quickly reverberate through worldwide energy chains, keeping prices elevated until supply concerns ease.