Global energy markets were thrown into turmoil on Monday after QatarEnergy confirmed it had halted liquefied natural gas (LNG) production following drone strikes on its facilities, while Saudi Arabia temporarily shut down parts of the Ras Tanura Refinery after a related attack.
In a statement, QatarEnergy said it ceased LNG and associated product output after military attacks targeted its operations in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar. The company described the strikes as occurring amid escalating regional hostilities.
Shortly after the announcement, European natural gas prices jumped by nearly 50 percent, reflecting fears of supply disruptions from the world’s largest LNG exporter.
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Qatar’s Ministry of Defence said two drones launched from Iran struck a water tank belonging to a power plant in Mesaieed and an energy facility in Ras Laffan Industrial City operated by QatarEnergy.
Authorities reported no casualties, adding that damage assessments were ongoing and an official report would follow.
In parallel developments, Saudi authorities confirmed attempted drone attacks on the Ras Tanura refinery, one of the world’s largest oil processing facilities with a capacity of 550,000 barrels per day.
According to statements carried by the state-run Saudi Press Agency, two drones were intercepted, but debris triggered a small fire, causing limited damage and no injuries.
The refinery, located near Dammam on the kingdom’s Gulf coast, is a critical pillar of Saudi Arabia’s downstream infrastructure and a key node in global oil supply chains.
The attacks come as oil tankers accumulate near the Strait of Hormuz, a strategic maritime corridor that carries roughly a fifth of global seaborne oil and the bulk of Qatari gas exports.
Heightened security risks in the waterway have amplified volatility in both crude and gas markets.
Saudi Arabia’s Ministry of Energy said some refinery operations were suspended as a precautionary measure but stressed that domestic fuel supply would not be affected.
The escalation follows retaliatory strikes by Iran after the United States and Israel carried out air raids on Iranian targets.
Over the weekend, Iran reportedly launched strikes targeting Riyadh and Saudi Arabia’s eastern region.
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In a joint statement, the United States, Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates condemned Iranian attacks and reaffirmed their right to self-defence.
Energy analysts warn that any prolonged disruption to LNG exports from Qatar or oil flows through the Strait of Hormuz could trigger sustained price spikes, with significant knock-on effects for inflation, industrial production and energy security across Europe and Asia.
