European gas prices surge 45% after QatarEnergy halts LNG output following Iran attacks

European gas markets surged on Monday after production disruptions at facilities run by QatarEnergy heightened fears that escalating conflict involving Iran could threaten energy supplies from the Gulf region.

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The Dutch TTF natural gas contract — Europe’s benchmark gas price — jumped nearly 45 percent to more than 46 euros, extending earlier gains of over 20 percent as traders reacted to the widening regional conflict.

State-owned energy giant QatarEnergy said it halted liquefied natural gas (LNG) production after military strikes targeted its operating facilities at the country’s two major industrial hubs — Ras Laffan Industrial City and Mesaieed Industrial City.

In a statement, the company confirmed that production of LNG and related products had been suspended following the attacks.

“Due to military attacks on QatarEnergy's operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products,” the company said.

The firm added it would continue to monitor the situation and keep stakeholders informed as developments unfold.

The disruptions come as the conflict involving Iran widens across the Gulf.

Separately, Saudi Arabia’s state oil giant Saudi Aramco shut down its Ras Tanura Refinery following a suspected drone strike, according to reports. The facility was halted after Tehran launched strikes across the region in response to joint attacks by the United States and Israel on Iranian targets.

Located on Saudi Arabia’s Gulf coast, the Ras Tanura complex houses one of the Middle East’s largest refineries, with a processing capacity of about 550,000 barrels per day. It also serves as a critical export terminal for Saudi crude, making it central not only to the kingdom’s output but also to global supply chains.

The shutdowns come amid a widening wave of attacks across the Gulf. Drone strikes have also reportedly hit targets in Abu Dhabi, Dubai, Doha, Manama, and the commercial port area of Port of Duqm in Oman.