Energy prices experienced another sharp increase today. On the afternoon of March 19, the European natural gas benchmark—the Dutch TTF natural gas futures contract for April delivery—surged by as much as 35%, reaching a high of €74 per megawatt-hour, the highest level since late December 2022. Brent crude oil futures also rose sharply, climbing over 8% to exceed $111 per barrel.
The price surge follows a significant escalation in tensions involving Iran. Israel launched an attack on Iran's South Pars gas field, after which Iran struck Qatar's Ras Laffan natural gas facility. The attack caused severe damage to the Pearl GTL project, the world's largest gas-to-liquids plant. In addition, Kuwait Oil Company stated on Thursday that a production unit at the Mina Al-Ahmadi refinery was hit by a drone attack, triggering a small fire.
According to reports on March 19, Qatar's Ras Laffan gas facility was struck again by missiles. Earlier the same day, Iranian sources claimed that Iran had launched another attack on oil facilities in "Gulf countries hosting Iran's enemies." The Ras Laffan industrial city is home to the world's largest liquefied natural gas production facility, accounting for approximately 20% of global LNG output.
Natural gas prices soared by 35% today, with the Dutch TTF April contract hitting €74 per MWh. By the time of reporting, the gains had moderated to 25.5%, with prices at €68.61 per MWh. Since the outbreak of the Iran conflict, European natural gas prices have risen more than 100%, while Brent crude futures have increased over 50%.
Amid supply concerns and attacks on energy infrastructure in the Middle East, European energy stocks moved higher on Thursday. Equinor rose 8%, Harbour Energy gained over 4%, BP climbed nearly 3%, TotalEnergies advanced 2%, Eni increased 1.5%, and Shell rose nearly 1%.
Qatar Energy confirmed that several LNG facilities within the Ras Laffan industrial complex were hit by missile attacks, causing large fires and extensive damage. The complex includes a plant that typically accounts for about one-fifth of global LNG supply. Although shipments were suspended earlier this month due to the conflict, the latest attacks threaten to keep natural gas prices elevated for a longer period in Europe and Asia.
The Habshan gas facility in Abu Dhabi was also shut down after being struck by falling debris from an intercepted attack. A social media post from former U.S. President Donald Trump warned that the United States would retaliate if Qatar's LNG facilities were attacked again.
Analysts note that the full extent of the damage and the timeline for repairs remain unclear. While most of the LNG exported from the Middle East is purchased by Asian countries, any prolonged supply disruption would affect global supply balances—keeping prices high worldwide.
For Europe, the escalation comes at a delicate time: the region has just emerged from winter with nearly depleted gas storage. This means that this summer, Europe will need to purchase more LNG to replenish stocks, competing with Asian buyers for already reduced supplies.
Arne Lohmann Rasmussen, chief analyst at Global Risk Management, stated, "In theory, Qatar's LNG supplies could be disrupted for months, or even years in the worst-case scenario. For the gas market, the crisis will not end simply because the war ends and the Strait of Hormuz reopens."
Earlier this month, the Ras Laffan facility was shut down following an Iranian drone attack—the first supply disruption in its 30 years of operation. Now, after Israel's attack on Iran's South Pars gas field on Wednesday, Iran retaliated, and the large complex suffered further strikes. According to Qatari sources, the facility sustained widespread damage, making the prospect of a return to normal operations increasingly uncertain.
In a separate incident, a drone crashed into a refinery on Saudi Arabia's west coast, a day after Iran identified the facility as a target, indicating an escalation in attacks on regional energy assets. The Samref refinery, jointly owned by Saudi Aramco and ExxonMobil, is located in Yanbu on the Red Sea coast. Saudi Arabia's defense ministry stated that a ballistic missile targeting the area's port—a key channel for Saudi oil exports—had been intercepted.
Iran had previously indicated that the Samref refinery was among the energy facilities it would target following strikes on its own gas fields by Israel and the U.S. Qatar's largest LNG export facility and gas fields in the UAE have already been attacked.
Yanbu is also critical for Saudi Arabia and global oil markets. With the Strait of Hormuz obstructed and shipping through the route restricted, Saudi Arabia has increased oil exports from Yanbu. According to the latest Reuters reports, citing two sources, crude loading has resumed at the port of Yanbu.
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