European Gas Prices Soar 50% After Qatar Shuts World's Largest LNG Export Plant

Goldman Sachs warned that European gas prices had minimal war risk priced in before a recent surge. A potential disruption of LNG supply through the Strait of Hormuz could significantly raise European gas prices. A one-month halt could see prices rising by 130%, potentially reaching levels that triggered demand responses during the 2022 energy crisis. European gas futures surged after a drone attack on QatarEnergy's LNG facilities halted production. The halt at Ras Laffan, covering a fifth of global LNG supply, threatens worldwide energy security. Tankers have largely stopped transiting the Strait of Hormuz, a vital fuel shipment route. European gas storage inventories are low, increasing reliance on LNG imports. Analysts emphasize the duration of the disruption will determine the severity of price increases. The US has limited upside risk to natural gas prices, while Asian countries will face increased competition for alternative LNG supplies. The conflict is deepening, with ongoing attacks and intercepted missiles across the Middle East.