Iranian drone strikes forced Qatar to halt production of liquefied natural gas (LNG) on Monday, shocking global energy markets and raising fears of supply disruptions as Tehran stepped up its attacks on regional infrastructure.
QatarEnergy, the state-owned giant and one of the world’s largest LNG producers, has suspended operations at two facilities after drones launched from Iran struck the sites, reports show.
Qatar’s Ministry of Defense also said as much in a statement, that two drones hit facilities in the country, although no casualties were reported.
The attacks also targeted a water tank at a power plant in Mesaieed and a major energy facility in Ras Laffan.
Qatar suspends liquefied natural gas operations after Iranian drones hit facilities.
The Ras Laffan complex in Qatar 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 passed through the Strait of Hormuz in 2024, mainly from Qatar, according to the US Energy Information Administration.
Markets reacted on Monday as European natural gas futures rose by the largest margin since the 2022 energy crisis caused by the war in Ukraine. Bloomberg reported.
GULF SHIPPING operations grind to a halt near Iran, US quietly prepares for possible strike: ‘INCREASED RISK’
People gather as smoke rises in the industrial area after reported Iranian missile strikes, following United States and Israel attacks on Iran, in Doha, Qatar, March 1, 2026. (REUTERS/Mohammed Salem)
Bloomberg also reported that Dutch TTF natural gas prices rose 50% following news of the shutdown. Asian LNG prices also posted gains as traders tried to gauge the extent and duration of the disruption.
“The threat to security of supply is here and now,” Simone Tagliapietra, analyst at Bruegel, told Bloomberg. “The extent of it will depend on the duration of the shutdown, but we are now in a new scenario.”
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In Saudi Arabia, another drone strike caused a fire at the kingdom’s Ras Tanura oil refinery, forcing a partial shutdown there as well.
Saudi authorities have reported no casualties, but reports say the attack has heightened fears of broader instability in the Gulf energy corridor.
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