LONDON (March 2, 2026) – European natural gas prices spiked more than 50 percent on Monday after Qatar suspended production at its liquefied natural gas (LNG) facility following a drone attack, intensifying fears of a major global supply disruption .
The benchmark Dutch TTF futures contract traded nearly 50 percent higher, reaching over 47 euros per megawatt-hour . At one point, prices jumped to their highest level since February 2025 . The surge represents the largest single-day increase for European gas markets since the start of the Russia-Ukraine conflict in 2022 .
State-owned QatarEnergy announced it halted production at its Ras Laffan complex after what it described as a drone strike . The company said a water tank at a power plant and another energy facility were hit . The Ras Laffan facility is the world’s largest LNG export terminal and handles approximately one-fifth of global LNG supply .
The attack is part of a broader escalation of conflict in the Middle East. The United States and Israel recently launched military operations against Iran, leading to retaliatory strikes . The fighting has also raised concerns about the safety of shipping through the Strait of Hormuz, a vital waterway through which about 20 percent of the world's LNG passes .
Ship traffic through the strait has slowed sharply, and major maritime insurers are set to withdraw war risk coverage for vessels entering the Persian Gulf later this week . This is expected to further complicate efforts to load cargoes from Qatar and other producers in the region .
Europe is particularly exposed to the disruption. Since cutting ties with Russian pipeline gas, the continent has relied heavily on LNG imports . Current gas storage levels across the European Union are below 31 percent, lower than the same period last year, leaving the region in a weak position ahead of the summer refilling season .
Analysts warned that the impact on prices will depend on how long the Qatari production halt and the shipping standstill last. Investment bank Goldman Sachs estimated that if the Strait of Hormuz remains effectively closed for a month, European gas prices could more than double .
The disruption in Qatar compounds other supply issues in the region. Israel recently ordered a temporary shutdown of parts of its Leviathan gas field, prompting Egypt to seek additional LNG cargoes . While most Qatari LNG is destined for Asia, any prolonged loss of supply will increase competition for cargoes from the United States and other exporters, pushing prices higher globally .
QatarEnergy was expected to declare force majeure on some LNG shipments, a legal move that frees it from contractual delivery obligations due to events beyond its control . Initial reports suggested the physical damage to the facilities was limited, but the operational halt and shipping delays were the primary drivers of the market panic .
European Union officials said the bloc's gas coordination group will meet on Wednesday to assess the situation and monitor security of supply .