European Gas Jumps 34% After Qatar LNG Attack Shocks Global Markets

Large explosions and thick smoke erupt from the Qatari Ras Laffan LNG facility after an Iranian drone strike. Workers in safety vests flee the industrial complex as fireballs rise near storage tanks.

On Monday, an Iranian drone struck the QatarEnergy LNG facility, the world’s largest supplying about 20% of global LNG. Operations stopped immediately, shaking the global energy system and sending shockwaves across international markets.

Aerial satellite view of the Strait of Hormuz showing dozens of LNG tankers anchored and stationary. Red dashed lines mark closed shipping lanes near the Iranian coastline.

The widening Middle East war effectively shut the Strait of Hormuz, a key export route for Qatari LNG. Even before the strike, shipping was blocked. Dozens of tankers carrying vital energy supplies were left stranded.

Traders on a European energy trading floor react with shock as screens display the Dutch TTF gas price surging 26 percent to over 55 euros per megawatt-hour.

European gas prices jumped 34%, with Dutch futures rising 26% to €55.96/MWh. Prices are now about 70% higher since Friday, marking the worst volatility since the 2022 energy crisis as traders reacted to supply fears.

Close-up of a senior Chinese diplomat speaking urgently on a phone. A digital map behind him shows stranded LNG tanker positions in the Strait of Hormuz.

China, the world’s largest LNG importer, urged all sides in the Iran conflict to ensure safe ship passage through the Strait of Hormuz. Senior executives said Chinese officials pressured Iran to avoid disrupting Qatari gas exports.

Low-angle view of massive natural gas storage tanks in Europe. Gauge panels show critically low reserves as snow falls in a cold winter landscape.

Europe entered late winter with gas reserves heavily depleted. The summer refill season now faces risk as competition with Asian buyers increases. Wider price spreads made it unprofitable for traders to store gas for future use.

A Goldman Sachs analyst points to a revised price forecast of 55 euros per megawatt-hour. An inset shows MET Group CEO Huibert Vigeveno warning on energy security.

Goldman Sachs raised its European gas forecast from €36 to €55/MWh for April 2026. Volatility hit its highest since summer 2023. Huibert Vigeveno warned Europe could again face serious energy supply risks.