Gas Prices Surge: LNG Attacks, Forecasts & Market Volatility
- European natural gas prices experienced a significant jump on Thursday, March 19, 2026, following a series of Iranian attacks on Qatar’s Ras Laffan Industrial City (RLIC), the world’s...
- The attacks, which QatarEnergy confirmed caused “sizeable fires and extensive further damage” to several LNG facilities, have intensified fears of persistent global gas supply disruptions.
- The surge in European gas prices reflects the vulnerability of the continent’s energy supply.
European Gas Prices Surge Following Iranian Attacks on Qatar
European natural gas prices experienced a significant jump on Thursday, , following a series of Iranian attacks on Qatar’s Ras Laffan Industrial City (RLIC), the world’s largest LNG liquefaction complex. The April 2026 contract for the Dutch TTF Natural Gas Futures opened 35% higher before settling at a 24% increase, reaching over $69 (60 euros) per megawatt-hour (MWh) – nearly double the price before the escalation of conflict in the Middle East on .
The attacks, which QatarEnergy confirmed caused “sizeable fires and extensive further damage” to several LNG facilities, have intensified fears of persistent global gas supply disruptions. Qatar had already preemptively halted operations at Ras Laffan in early March, citing security concerns related to a drone attack near the site and the effective closure of the Strait of Hormuz. This latest escalation adds a layer of complexity to an already strained global energy market.
The surge in European gas prices reflects the vulnerability of the continent’s energy supply. With EU gas inventories at their lowest levels in years at the end of this winter, Europe faces a critical need to replenish reserves ahead of the 2026/2027 winter heating season. The disruption of approximately 20% of global LNG flows has already prompted Asian buyers to outbid Europe for available spot LNG supply, exacerbating the situation.
The impact extends beyond natural gas. Brent crude, the global oil benchmark, rose 1.18% to settle at $108.65 per barrel, its highest level during the current Iran war and the highest closing price since . WTI, the US benchmark, also saw initial gains before paring back to settle slightly lower. The volatility in both oil and gas markets underscores the interconnectedness of global energy supplies and the sensitivity to geopolitical events in the Middle East.
While the immediate price spikes are concerning, potential mitigating factors are emerging. Israeli Prime Minister Benjamin Netanyahu stated that Israel would work with the United States to reopen the Strait of Hormuz. US Treasury Secretary Scott Bessent indicated the possibility of removing sanctions on Iranian oil tankers and another release from the Strategic Petroleum Reserve to help lower prices. However, the effectiveness of these measures remains uncertain.
The attacks have also benefited US liquefied natural gas producers. Shares of Cheniere Energy jumped to an all-time high, and Venture Global saw a significant initial spike, as investors anticipate increased demand for US LNG exports to fill the supply gap created by the disruptions in Qatar. This highlights a potential shift in the global LNG landscape, with the US positioned to play a larger role in meeting European energy needs.
Looking ahead, the duration of the disruptions at Ras Laffan will be a key factor determining the extent of the impact on global energy markets. Repair work at the damaged facilities could take considerable time, potentially prolonging the supply shortage. Traders will be closely monitoring developments in the Middle East, particularly any further escalation of conflict or attempts to reopen the Strait of Hormuz. The situation remains fluid and highly sensitive to geopolitical developments, making it crucial to monitor these events closely in the coming weeks and months.