Iran Drone Attack Halts Qatar LNG Production

Qatar has halted liquefied natural gas (LNG) production at its Ras Laffan plant, the world's largest export facility, following an Iranian drone attack. This incident, a retaliation for joint US-Israeli strikes on Iran, has caused European gas prices to surge by over 50% and is rattling global energy markets. The Ras Laffan plant accounts for about a fifth of global LNG supply, and its shutdown, along with a dramatic slowdown of traffic through the critical Strait of Hormuz, poses a severe threat to energy security worldwide. QatarEnergy has declared force majeure on its contractual obligations. The conflict has also led to Israel temporarily closing its Leviathan gas field, prompting Egypt to seek more LNG. US President Donald Trump indicated that the bombing campaign against Iran could last for weeks, suggesting a prolonged period of instability. Analysts warn that the price shock could be similar to that experienced after Russia's invasion of Ukraine in 2022, with dire consequences for government budgets in Europe and Asia.