European gas prices soar over 40% after Qatar halts LNG output amid Middle East conflict

European natural gas prices surged sharply on Monday as reports suggest that Qatar Energy announced it was halting liquefied natural gas (LNG) production following Iranian attacks near key gas processing facilities, intensifying concerns over energy supplies across the continent.

The Dutch TTF natural gas contract, regarded as Europe’s benchmark for gas pricing, jumped nearly 45% to trade above 46 euros per megawatt-hour, as per reports. 

Futures for April delivery on the ICE commodities exchange climbed as much as 42%, reaching 45.46 euros (approximately $53.26), reflecting market anxiety over supply disruptions.

The production halt comes amid escalating conflict involving Iran and heightened instability in the Gulf region. QatarEnergy cited security risks linked to the ongoing hostilities as the primary reason for suspending LNG output.

Qatar is one of the world’s largest LNG exporters and a critical supplier to Europe. European nations have increasingly relied on LNG imports from Qatar and other producers to offset reduced pipeline gas supplies from Russia following Moscow’s invasion of Ukraine.

Adding to the uncertainty, shipping activity through the strategically vital Strait of Hormuz has reportedly been disrupted. The narrow waterway is a key transit route for LNG tankers departing the Persian Gulf, and any obstruction poses a significant threat to global energy markets.

Gas prices had already risen more than 20% earlier amid fears that the widening conflict could choke off supplies from the Gulf. Monday’s sharp spike underscores Europe’s ongoing energy vulnerability as geopolitical tensions continue to rattle global markets.

Energy analysts warn that if the production halt persists or regional hostilities escalate further, European consumers could face renewed pressure on energy costs just as the bloc seeks to stabilise supplies ahead of the next winter season.