The wholesale natural gas reference prices in Europe closed with a growth of 39.26 percent today, after “QatarEnergy“ (QatarEnergy) announced that it was suspending production of liquefied natural gas due to attacks in the Middle East, and the suspension of shipping through the Strait of Hormuz increased concerns about the duration of the disruption, Reuters reported.
Qatar, which is expected to consolidate its position as the world's second-largest exporter of liquefied natural gas after the United States, plays a key role in balancing gas demand in Asia and Europe.
A source familiar with the situation told Reuters that „QatarEnergy“ would declare force majeure on supplies.
„Qatar's decision to suspend production is likely a precautionary measure, as the gas is a highly flammable hydrocarbon. "If a drone were to hit a facility carrying LNG or natural gas, the results would be catastrophic," said Scott Shelton, an energy analyst at British interdealer broker TP ICAP. He said the force majeure was likely to remain in effect as long as hostilities continued and ships were not allowed to pass through the Strait of Hormuz.
In Saudi Arabia, state-owned Saudi Aramco shut down its Ras Tanura refinery as a precaution - the country's largest, with a capacity of about 550,000 barrels per day, a source told Reuters.
Natural gas futures on the leading European hub TTF in the Netherlands, the benchmark for Europe - rose by almost 40 percent to 44.50 euros per megawatt hour (MWh) at the close of trading, according to data from the ICE exchange. Earlier in the day, the increase reached almost 50 percent.
Europe has increased imports of liquefied natural gas in recent years in a bid to reduce its dependence on Russian gas after Russia's invasion of Ukraine. Although the share of supplies from the United States is growing, in the third quarter of 2025 about 6 percent of EU liquefied natural gas imports were from Qatar, the latest EU data show.
About 20 percent of global liquefied natural gas supplies pass through the Strait of Hormuz. A prolonged disruption or complete closure of the route would intensify global competition for alternative sources and push up international prices.
Gas benchmark prices in Asia also rose sharply. The S&P Global Japan-Korea Marker (JKM) index reached $15.068 per million British thermal units (mmBtu), up nearly 39 percent, Platts data showed.
Analysts at Goldman Sachs said that in a one-month disruption scenario, TTF prices could reach around €74/MWh ($25/mmBtu) – roughly 130 percent above current levels. In a disruption of more than two months, TTF prices could exceed €100/MWh, they added.
British April contracts also rose – by 32.15 pence to 110.72 pence per therm, according to ICE data.
Europe is also relying on liquefied natural gas to replenish its gas storage facilities, which have been depleted since the winter season and are currently about 30 percent full, according to data from “Gas Infrastructure Europe“.
A European Commission spokesman told Reuters that the EU's Gas Coordination Group, which includes representatives of member state governments, would meet on Wednesday to assess the impact of the escalating conflict in the Middle East.