Iran drone strikes force Qatar to halt major LNG production operations

Iranian drone strikes forced Qatar to halt its production of liquefied natural gas (LNG) on Monday, shaking global energy markets and raising fears of supply disruptions as Tehran stepped up attacks on regional infrastructure.

QatarEnergy, the state-owned giant and one of the world’s largest LNG producers, suspended operations at two facilities after drones launched from Iran struck the sites, according to reports.

Qatar’s Defense Ministry also said in a statement that two drones hit facilities in the country, but no casualties were reported.

The attacks also targeted a water reservoir at a power plant in Mesaieed and a key energy facility in Ras Laffan.

Qatar suspends liquefied natural gas operations after Iranian drones strike facilities.

Qatar’s Ras Laffan complex is the world’s largest LNG export facility, making it one of the world’s most critical energy hubs.

About 20% of global LNG trade passed through the Strait of Hormuz in 2024, primarily from Qatar, according to the U.S. Energy Information Administration.

Markets reacted Monday with benchmark European natural gas futures rising, the biggest margin since the 2022 energy crisis triggered by the war in Ukraine, Bloomberg reported.

GULF SHIPPING OPERATIONS STOPPED NEAR IRAN, US QUIETLY PREPARING FOR POSSIBLE STRIKE: “INCREASED RISK”

People gather as smoke rises in the industrial zone after Iranian missile attacks, following U.S. and Israeli strikes against Iran, in Doha, Qatar, March 1, 2026. (Reuters/Mohammed Salem)

Bloomberg also reported that TTF natural gas prices in the Netherlands increased by 50% after the shutdown was announced. Asian LNG prices also saw gains as traders tried to gauge the scale and duration of the disruption.

“The threat to security of supply is here and now,” Simone Tagliapietra, an analyst at Bruegel, told Bloomberg. “The extent of this situation will depend on the length of the closure, but we now find ourselves in a new scenario.”

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

In Saudi Arabia, another drone attack caused a fire at the Ras Tanura oil refinery, also causing a partial shutdown.

Saudi authorities have not reported any casualties, but the attack has increased fears of greater instability in the Gulf energy corridor, according to reports.

Related article