Gas prices recorded their sharpest rise since the start of the Ukraine war after Qatar suspended liquefied natural gas production in the wake of an Iranian attack.
European wholesale prices surged 52%, marking the steepest increase since March 2022, after state-owned energy group QatarEnergy halted operations at a gas processing facility struck on Monday.
Qatar, a key gas supplier to the UK, said an Iranian drone had targeted the site around 50 miles north of Doha. In Saudi Arabia, authorities confirmed the closure of the country’s largest domestic oil refinery at Ras Tanura following a reported drone strike.
Europe’s benchmark natural gas contract climbed above €48 per megawatt hour — its highest level in a year — compared with prices below €27 in December. The market had already risen more than 20% amid concerns that the conflict with Iran could disrupt traffic through the Strait of Hormuz.
Saudi Arabia shuts major refinery following drone strike
Saudi Arabia has closed its largest domestic oil refinery after it was reportedly targeted in a drone attack.
State energy group Saudi Aramco halted operations at its Ras Tanura facility, which has capacity to process around 550,000 barrels of crude per day.
According to Reuters, authorities said the situation has been brought under control.
