Iran Drone Attacks Halt Qatar LNG

On March 2, Iran launched drone attacks on QatarEnergy's energy facilities at Qatar — Ras Laffan Industrial City and Qatar — Mesaieed Industrial Area in Qatar, forcing QatarEnergy to suspend liquefied natural gas (LNG) production. This unprecedented halt at the world's largest LNG export facility, which supplies about a fifth of global LNG, sent European gas prices surging by over 50%. The incident marks a dramatic escalation in a broader conflict involving the United States and Israel's strikes on Iran and Hezbollah, and Iran's retaliatory attacks on Bahrain, the United Arab Emirates, and Saudi Arabia's Ras Tanura oil refinery. The Strait of Hormuz, a critical shipping route, has seen a dramatic slowdown in traffic, with war-risk insurance premiums increasing and several tankers sustaining damage. Israel also ordered the temporary closure of its Leviathan gas field, further tightening regional supply and forcing Egypt to seek additional LNG. The disruption poses a significant threat to global energy security, with potential price shocks similar to those seen after Russia's invasion of Ukraine, and could have severe financial implications for Europe and Asia, which are already facing low gas storage levels.