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On Monday, Iranian drone strikes compelled Qatar to suspend its liquefied natural gas (LNG) production, sending shockwaves through global energy markets. The incident has heightened concerns over potential supply disruptions as Tehran escalates its attacks on regional infrastructure.
QatarEnergy, the state-owned enterprise and one of the world’s leading LNG producers, had to halt operations at two of its facilities following the drone assaults, which were reportedly launched from Iran.
In a statement, Qatar’s Ministry of Defense confirmed the impact of the strikes, noting that two drones had targeted facilities within the country. Thankfully, no casualties resulted from these attacks.
The strikes also focused on other critical infrastructure, including a water tank at a power plant in Mesaieed and a significant energy site in Ras Laffan, compounding the damage.
Qatar suspends liquefied natural gas operations after Iranian drones hit facilities.
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.
People gather as smoke rises at the Industrial Area after reported Iranian missile attacks, following United States and Israel strikes on Iran, in Doha, Qatar, March 1, 2026. (REUTERS/Mohammed Salem)
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.
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