Prices rise as Iranian drones strike Qatari LNG

Qatar halted liquefied natural gas production on Monday after Iran attacked its energy facilities with drones. According to the Financial Times, this is the biggest disruption to energy supplies so far in the escalating conflict in the Middle East. Reports indicate the drones targeted the Ras Laffan complex. The Qatari Ministry of Defence announced that it is still assessing the damage.

The QatarEnergy shutdown drove up natural gas prices in Europe and Asia by more than 30 per cent. Oil prices rose by about eight per cent as tensions and attacks on ships brought shipping through the Strait of Hormuz to a near standstill. A significant portion of the world's oil and gas supplies passes through this narrow corridor, so tankers waited at its mouth.

Saudi Arabia also announced a preventive suspension of refinery operations after a drone attack. Investors responded by fleeing to safe assets: gold rose and stock markets fell. Analysts warn that continued attacks on infrastructure in the Persian Gulf could cause a prolonged price shock.

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