Global Economy
European Natural Gas Prices Surge 36% After Qatar LNG Production Halted Amid Middle East Conflict
European natural‑gas futures spiked by roughly 36 % this week, touching almost €58/MWh – the highest level since January 2023 – before easing back to around €54/MWh. The rally follows a sharp 35 % jump the previous session, driven by mounting concerns that Iranian drone attacks on Qatar’s Ras Laffan and Mesaieed LNG plants could curtail supply to Europe. QatarEnergy announced an immediate halt to LNG output after the strikes, cutting off about one‑fifth of global LNG capacity and threatening up to 15 % of the EU’s LNG imports. With Iran also blocking traffic through the Strait of Hormuz, alternative supplies are tightening just as EU gas inventories sit at a precarious 31 % of annual consumption, down from 40 % a year earlier.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
European Natural Gas Futures Jump 36% After Qatar LNG Shutdown
European gas futures surged by roughly 36%, touching almost €58 per megawatt‑hour (MWh), the highest level seen since January 2023. Prices later settled near €54/MWh after a brief pull‑back.
The rally follows a 35% leap in the previous trading session, spurred by escalating geopolitical tension in the Middle East.
What Triggered the Spike?
On Monday, QatarEnergy halted LNG production after Iranian drones struck the Ras Laffan and Mesaieed facilities – together accounting for about one‑fifth of global LNG capacity.
- Potential impact: up to 15% of the EU’s LNG imports could be affected.
- The outage tightens global supply and fuels competition for alternative sources.
Broader Regional Risks
Iran has also blocked traffic through the Strait of Hormuz, further restricting exports from other major Middle‑East producers.
EU Gas Inventories at Risk
European gas stocks are currently low, covering only 31% of the EU’s annual consumption, down from 40% at this time last year. The combination of reduced supply and dwindling inventories is amplifying price volatility.
Investors and market participants should monitor developments closely, as any further escalation in the region could push European gas prices even higher.