Dubai: Oil and gas prices rocketed on Thursday after Iranian missile strikes hit Qatar’s Ras Laffan Industrial City, the world’s largest liquefied natural gas (LNG) export hub.
Ras Laffan is a key part of Qatar’s economy and a major source of gas for many countries including India. Emergency teams rushed to the site to put out fires.
CNBC reported, quoting Qatar’s Interior Ministry, that the fire at the LNG plant had been brought under control.
There were no injuries, according to QatarEnergy.
Iran had earlier warned it could hit energy facilities in Qatar, Saudi Arabia and the United Arab Emirates in response to Israel’s strike on a gas plant in Iran on Wednesday.
Qatar had already stopped LNG production on March 2, following Iranian drone attacks on Ras Laffan and another industrial area called Mesaieed.
As the No. 2 LNG exporter after the US — supplying nearly 20% of global shipments – Qatar’s disruptions threaten cargo delays. Ras Laffan produces 77 million metric tons of LNG yearly, including aviation fuel from condensate.
Saul Kavonic of MST Marquee told Reuters attacks on Ras Laffan “could cause a lasting global gas shortage,” potentially benefiting top exporter US via higher prices.
Brent crude oil futures for May rose strongly, trading above 110 dollars a barrel at one point as traders reacted to the news of the attacks. US West Texas Intermediate oil futures also moved higher, adding to gains earlier in the week.
The Strait of Hormuz, through which 20% of world oil passes, amplifies risks amid the Iran war.
“Can you envision the global reaction if (Iran) targeted something outside the Persian Gulf, like a refinery in Rotterdam or a facility in the US? That’s when the situation becomes unpredictable, and prices could skyrocket,” Tom Kloza, Gulf Oil’s senior energy advisor, told CNBC, warning of “apocalyptic” levels if escalation spreads.
Benchmark gas prices in Europe jumped 65% in a month since the war, as Qatar and Iran cuts constrain Middle East supplies. Electricity costs in gas-dependent nations skyrocketed, with Hungary, Italy and Romania seeing at least 12% year-over-year hikes in 2026, as per Reuters.
European Union leaders, at a summit on Thursday, mulled a “toolbox of targeted temporary measures” like emissions tweaks, tax cuts, and state aid, but Hormuz disruptions limit relief.
The disruption in the Persian Gulf has already created logistical bottlenecks. Twenty-two Indian-flagged ships carrying crude oil, LPG and LNG are stranded, unable to transit the Strait of Hormuz. These vessels are carrying 1.67 million tonnes of crude oil, 3.2 lakh tonnes of LPG and about 2 lakh tonnes of LNG. Efforts are underway to secure safe passage, but the uncertainty is acute.
