Explained: Why Asia, not Europe, may bear the biggest impact if Gulf oil and gas production stops
The Gulf region hosts some of the world’s largest oil and gas reserves. Countries such as Saudi Arabia, Qatar, Kuwait and the United Arab Emirates collectively account for a substantial share of global energy exports.
- Mar 2, 2026,
- Updated Mar 2, 2026 6:09 PM IST
As the conflict in West Asia intensifies, early disruptions to oil and gas infrastructure across the Gulf are already highlighting how vulnerable global energy markets are to regional instability. Temporary shutdowns by major energy producers — including Qatar and Saudi Arabia — illustrate how quickly geopolitical tensions can ripple through global energy supplies.
Follow live coverage on US-Israel-Iran war here
These developments are also reinforcing a broader concern: if attacks on energy infrastructure escalate, the consequences could extend far beyond the region, affecting prices and supplies worldwide.
Early disruptions
Recent attacks and security threats have forced precautionary shutdowns at some of the region’s most critical energy facilities.
For instance, state-owned QatarEnergy reportedly halted liquefied natural gas production after Iranian drone strikes targeted energy infrastructure in Qatar. The suspension followed attacks on facilities linked to the country’s LNG export system, raising fears of broader supply disruptions.
The halt was significant because Qatar is one of the world’s largest exporters of LNG, supplying major buyers in Europe and Asia. Markets reacted quickly, with natural gas prices in both regions rising amid fears of reduced supply.
At the same time, Saudi Arabia’s state oil giant Saudi Aramco temporarily shut operations at its massive Ras Tanura Refinery after drone threats linked to Iranian retaliation. The facility processes hundreds of thousands of barrels per day and serves as one of the kingdom’s key export hubs.
Together, these shutdowns highlight how quickly attacks on energy infrastructure can disrupt global markets.
Why the Gulf matters to global energy
The Gulf region hosts some of the world’s largest oil and gas reserves. Countries such as Saudi Arabia, Qatar, Kuwait and the United Arab Emirates collectively account for a substantial share of global energy exports.
Much of this oil and LNG moves through the strategic Strait of Hormuz — a narrow waterway through which roughly a fifth of global oil supply and a large share of LNG shipments pass.
When attacks or military tensions threaten energy infrastructure or shipping routes in the region, markets react almost instantly.
In the latest escalation, oil prices surged sharply after reports of facility shutdowns and disruptions to tanker movements in the Gulf.
Asia could face the biggest supply risk
Despite the global nature of energy markets, the impact of Gulf disruptions is not evenly distributed.
Asian economies such as China, India, Japan and South Korea rely heavily on crude oil and LNG shipments from Gulf producers.
For some of these countries, a majority of imported oil originates from the region, making them particularly vulnerable to supply disruptions if production or shipping is interrupted.
A prolonged shutdown of LNG facilities in Qatar or refinery disruptions in Saudi Arabia could therefore have an outsized effect on Asian energy markets.
Europe faces price shocks rather than shortages
Europe would also feel the impact — particularly after reducing energy imports from Russia in recent years.
European countries have increased LNG imports from Qatar and other global suppliers, meaning disruptions in Gulf gas exports could tighten supply and push prices higher.
However, Europe sources oil and gas from multiple regions including the United States and Norway, which provides some diversification compared with Asia’s heavy reliance on Gulf energy.
As a result, Europe is more likely to experience price shocks and economic pressure, while Asian economies could face more immediate supply concerns.
A warning sign for global markets
The temporary shutdowns by QatarEnergy and Saudi Aramco are still limited in scope, but they offer a glimpse of how quickly geopolitical tensions can disrupt the global energy system.
If attacks on Gulf energy infrastructure intensify — or if tanker traffic through the Strait of Hormuz is interrupted — the world could face a much larger energy shock.
As the conflict in West Asia intensifies, early disruptions to oil and gas infrastructure across the Gulf are already highlighting how vulnerable global energy markets are to regional instability. Temporary shutdowns by major energy producers — including Qatar and Saudi Arabia — illustrate how quickly geopolitical tensions can ripple through global energy supplies.
Follow live coverage on US-Israel-Iran war here
These developments are also reinforcing a broader concern: if attacks on energy infrastructure escalate, the consequences could extend far beyond the region, affecting prices and supplies worldwide.
Early disruptions
Recent attacks and security threats have forced precautionary shutdowns at some of the region’s most critical energy facilities.
For instance, state-owned QatarEnergy reportedly halted liquefied natural gas production after Iranian drone strikes targeted energy infrastructure in Qatar. The suspension followed attacks on facilities linked to the country’s LNG export system, raising fears of broader supply disruptions.
The halt was significant because Qatar is one of the world’s largest exporters of LNG, supplying major buyers in Europe and Asia. Markets reacted quickly, with natural gas prices in both regions rising amid fears of reduced supply.
At the same time, Saudi Arabia’s state oil giant Saudi Aramco temporarily shut operations at its massive Ras Tanura Refinery after drone threats linked to Iranian retaliation. The facility processes hundreds of thousands of barrels per day and serves as one of the kingdom’s key export hubs.
Together, these shutdowns highlight how quickly attacks on energy infrastructure can disrupt global markets.
Why the Gulf matters to global energy
The Gulf region hosts some of the world’s largest oil and gas reserves. Countries such as Saudi Arabia, Qatar, Kuwait and the United Arab Emirates collectively account for a substantial share of global energy exports.
Much of this oil and LNG moves through the strategic Strait of Hormuz — a narrow waterway through which roughly a fifth of global oil supply and a large share of LNG shipments pass.
When attacks or military tensions threaten energy infrastructure or shipping routes in the region, markets react almost instantly.
In the latest escalation, oil prices surged sharply after reports of facility shutdowns and disruptions to tanker movements in the Gulf.
Asia could face the biggest supply risk
Despite the global nature of energy markets, the impact of Gulf disruptions is not evenly distributed.
Asian economies such as China, India, Japan and South Korea rely heavily on crude oil and LNG shipments from Gulf producers.
For some of these countries, a majority of imported oil originates from the region, making them particularly vulnerable to supply disruptions if production or shipping is interrupted.
A prolonged shutdown of LNG facilities in Qatar or refinery disruptions in Saudi Arabia could therefore have an outsized effect on Asian energy markets.
Europe faces price shocks rather than shortages
Europe would also feel the impact — particularly after reducing energy imports from Russia in recent years.
European countries have increased LNG imports from Qatar and other global suppliers, meaning disruptions in Gulf gas exports could tighten supply and push prices higher.
However, Europe sources oil and gas from multiple regions including the United States and Norway, which provides some diversification compared with Asia’s heavy reliance on Gulf energy.
As a result, Europe is more likely to experience price shocks and economic pressure, while Asian economies could face more immediate supply concerns.
A warning sign for global markets
The temporary shutdowns by QatarEnergy and Saudi Aramco are still limited in scope, but they offer a glimpse of how quickly geopolitical tensions can disrupt the global energy system.
If attacks on Gulf energy infrastructure intensify — or if tanker traffic through the Strait of Hormuz is interrupted — the world could face a much larger energy shock.