A major escalation in military conflict involving the United States, Israel, and Iran has triggered one of the most significant disruptions to global energy markets in recent years. Gas prices surged dramatically on Monday, with the European benchmark Dutch day-ahead contract jumping 41% to €45 per megawatt hour, up from €32 the previous Friday. The UK day-ahead gas contract similarly rose 40% to 110p a therm, alarming households and businesses already struggling with high energy costs.
At the heart of the supply crisis is the shutdown of liquefied natural gas production facilities in Qatar. State-owned energy company QatarEnergy confirmed it halted operations at its Ras Laffan and Mesaieed sites following drone attacks. Qatar is one of the world’s largest LNG producers, and the loss of its output could eliminate nearly 20% of global LNG supply.
Oil prices also surged sharply, with Brent crude climbing as much as 13% to $82 a barrel during early trading — a 14-month high. The effective closure of the Strait of Hormuz, through which roughly one-fifth of global oil supplies pass, intensified fears of a prolonged supply disruption. Though prices pulled back slightly, Brent crude remained about 6% higher at $77 a barrel by the end of Monday’s session.
Stock markets across the globe fell in response. London’s FTSE 100 dropped 1.2%, while European indices including Germany’s DAX, France’s CAC 40, Italy’s FTSE MIB, and Spain’s IBEX all fell between 2% and 2.6%. Wall Street opened lower as well. In Asia, Tokyo’s Nikkei 225 fell nearly 2.4%, though it later recovered slightly.
Analysts warned that oil prices could exceed $100 a barrel if the Strait of Hormuz remains blocked for an extended period. Shipping giants like Maersk announced suspension of transits through both the Strait of Hormuz and the Suez Canal. Motorists in the UK could face petrol prices approaching 150p per litre if oil stabilizes at $100 a barrel, according to fuel analysts.