Qatar has halted production at Ras Laffan, the world's largest liquefied natural gas export facility, after it was struck by Iranian drones, sending European gas prices to their highest level in a year.
The state energy company declared force majeure, a legal clause that permits it to miss contracted deliveries without penalty due to circumstances beyond its control, though no structural damage to the facility has been reported.
Ras Laffan supplies around a fifth of global LNG, and its closure sent Dutch front-month futures, Europe's benchmark gas price, 39% higher to €44.51 per megawatt-hour, the sharpest single-day rise since Russia invaded Ukraine in 2022.
LNG tankers had already largely stopped transiting the Strait of Hormuz, the narrow waterway at the mouth of the Persian Gulf through which a significant share of global fuel flows, before the facility shutdown compounded the disruption.
European gas inventories are below seasonal norms, making the continent particularly vulnerable to any prolonged interruption to Middle East supplies, as it will need to import large volumes of LNG over the summer to refill storage ahead of next winter.
Goldman Sachs, the US investment bank, warned that a one-month halt to Strait of Hormuz shipping could more than double European gas prices from current levels.
US President Donald Trump said the bombing campaign against Iran could last for weeks, adding to uncertainty over the duration of the disruption and keeping traders on edge over the outlook for global energy markets.