The bombing of energy lifelines by Iran and Israel has caused a 35% surge in European natural gas prices, plunging the world into an energy doomsday scenario.
2026-03-20 09:47:20
Amid a full-scale escalation of the conflict between the US and Israel and Iran in the Middle East, with energy infrastructure becoming a direct target, European natural gas prices surged by as much as 35% on Thursday (March 19), marking the most dramatic single-day increase in recent years.
Iran and Israel have launched successive attacks on each other's core natural gas facilities, severely damaging the world's largest liquefied natural gas (LNG) production base, with supply disruptions potentially lasting for months or even years. The international energy market is facing its most severe structural damage since the oil crisis, with Brent crude oil prices surging by as much as 10%, and the outlook for global inflation and economic stability deteriorating sharply.
On Wednesday, Israel launched a precision strike on Iran's South Pars gas field (the Iranian portion of the world's largest natural gas field), causing fires at gas tanks and refining facilities and severely disrupting production. Iran retaliated early Thursday morning with a missile attack on Qatar's Ras Raffarin industrial city, destroying two liquefied natural gas (LNG) production lines. It is estimated that this disruption could reduce Qatar's LNG exports by approximately 17% over the next three to five years.
"I never dreamed that Qatar and the entire region would suffer such an attack, especially that a brotherly Muslim country would attack us in this way during Ramadan," Qatar Energy CEO Saad al-Kaabi told the media. He added that the company may have to declare force majeure for long-term contracts with Belgium, a major Asian country, Italy, and South Korea.
South Pars and Ras Lafan represent the core positions of Iran and Qatar in global natural gas supply, respectively. Attacks on both directly cut off approximately 20% of global LNG production capacity.
With shipping in the Strait of Hormuz effectively closed, coupled with the damage to production facilities, the global natural gas market is facing an unprecedented systemic crisis.
Driven by the double whammy of the attacks, European natural gas futures prices surged as much as 35% on Thursday, far exceeding any previous single-day volatility record. Analysts pointed out that this surge stemmed not only from supply concerns but also reflected the market's extreme panic over a long-term structural shortage.
"We are now heading toward a doomsday scenario for the natural gas crisis," said Saul Kavonic, an energy analyst at MST Financial. "Even if the war ends, the disruption to liquefied natural gas supplies could last for months or even years."
Brent crude oil prices also jumped by as much as 10% at one point, before the gains subsided, but overall remained around $105 per barrel.
Global energy trade has been brought to a near standstill, and importing countries in Asia and Europe are urgently adjusting their energy structures, accelerating their shift to coal and nuclear power to cope with potential shortages.
Iranian Foreign Minister Abbas Araqchi stated on the X platform that Iran will "show no mercy" if its infrastructure is attacked again. Iran has designated Saudi Arabia's Jubail petrochemical complex, the UAE's Hosn gas field, and Qatar's Mesayed petrochemical complex as "direct and legitimate targets," warning those involved to evacuate immediately or face attacks within hours.
President Trump stated that Israeli Prime Minister Netanyahu has pledged to refrain from attacking Iranian energy facilities. However, the Iranian Revolutionary Guard continues to launch missile and drone attacks on Israeli and US military bases in the Gulf region, escalating the scope and intensity of the conflict.
The United Kingdom, France, Germany, Italy, Japan, and the Netherlands issued a joint statement calling for an immediate halt to attacks on oil and gas facilities and stating that they are working with energy-producing countries to stabilize the market.
International Monetary Fund (IMF) spokesperson Julie Kozack said that if energy prices rise by 10% and continue for about a year, it will lead to a 40 basis point increase in global inflation and a 0.1% to 0.2% decrease in economic output.
The attacks on the Pars and Ras Lafan gas fields mark an escalation of the conflict with Iran from military confrontation to a battle for energy survival. Approximately 20% of global oil and LNG supplies face the risk of long-term disruption, and repairing damaged facilities could take years. European natural gas prices surged 35%, and Brent crude briefly broke through $110, indicating that the market has entered a state of extreme panic.
In the coming hours and weeks, whether Iran delivers on its promise of full retaliation, the duration of the Straits blockade, and the level of coordination among major powers will directly determine global energy prices, inflation levels, and the prospects for economic stability.
Investors and governments worldwide must be highly vigilant, as this Middle East crisis has evolved into a "nuclear-level" event for global energy and financial markets. Any misjudgment could trigger an unbearable chain of disasters. Whether calm thinking ultimately prevails may be the biggest variable determining the fate of the world in the coming months.
Iran and Israel have launched successive attacks on each other's core natural gas facilities, severely damaging the world's largest liquefied natural gas (LNG) production base, with supply disruptions potentially lasting for months or even years. The international energy market is facing its most severe structural damage since the oil crisis, with Brent crude oil prices surging by as much as 10%, and the outlook for global inflation and economic stability deteriorating sharply.
Pars and Las Lafan gas fields attacked, paralyzing the world's largest gas fields.
On Wednesday, Israel launched a precision strike on Iran's South Pars gas field (the Iranian portion of the world's largest natural gas field), causing fires at gas tanks and refining facilities and severely disrupting production. Iran retaliated early Thursday morning with a missile attack on Qatar's Ras Raffarin industrial city, destroying two liquefied natural gas (LNG) production lines. It is estimated that this disruption could reduce Qatar's LNG exports by approximately 17% over the next three to five years.
"I never dreamed that Qatar and the entire region would suffer such an attack, especially that a brotherly Muslim country would attack us in this way during Ramadan," Qatar Energy CEO Saad al-Kaabi told the media. He added that the company may have to declare force majeure for long-term contracts with Belgium, a major Asian country, Italy, and South Korea.
South Pars and Ras Lafan represent the core positions of Iran and Qatar in global natural gas supply, respectively. Attacks on both directly cut off approximately 20% of global LNG production capacity.
With shipping in the Strait of Hormuz effectively closed, coupled with the damage to production facilities, the global natural gas market is facing an unprecedented systemic crisis.
European natural gas prices surged to a record high, triggering widespread market panic.
Driven by the double whammy of the attacks, European natural gas futures prices surged as much as 35% on Thursday, far exceeding any previous single-day volatility record. Analysts pointed out that this surge stemmed not only from supply concerns but also reflected the market's extreme panic over a long-term structural shortage.
"We are now heading toward a doomsday scenario for the natural gas crisis," said Saul Kavonic, an energy analyst at MST Financial. "Even if the war ends, the disruption to liquefied natural gas supplies could last for months or even years."
Brent crude oil prices also jumped by as much as 10% at one point, before the gains subsided, but overall remained around $105 per barrel.
Global energy trade has been brought to a near standstill, and importing countries in Asia and Europe are urgently adjusting their energy structures, accelerating their shift to coal and nuclear power to cope with potential shortages.
Iran vows to show "no mercy," targeting all energy facilities in the Gulf.
Iranian Foreign Minister Abbas Araqchi stated on the X platform that Iran will "show no mercy" if its infrastructure is attacked again. Iran has designated Saudi Arabia's Jubail petrochemical complex, the UAE's Hosn gas field, and Qatar's Mesayed petrochemical complex as "direct and legitimate targets," warning those involved to evacuate immediately or face attacks within hours.
President Trump stated that Israeli Prime Minister Netanyahu has pledged to refrain from attacking Iranian energy facilities. However, the Iranian Revolutionary Guard continues to launch missile and drone attacks on Israeli and US military bases in the Gulf region, escalating the scope and intensity of the conflict.
The international community urgently calls for a ceasefire, and the IMF warns of a double whammy of inflation and slowing growth.
The United Kingdom, France, Germany, Italy, Japan, and the Netherlands issued a joint statement calling for an immediate halt to attacks on oil and gas facilities and stating that they are working with energy-producing countries to stabilize the market.
International Monetary Fund (IMF) spokesperson Julie Kozack said that if energy prices rise by 10% and continue for about a year, it will lead to a 40 basis point increase in global inflation and a 0.1% to 0.2% decrease in economic output.
The global energy crisis has entered its most dangerous phase.
The attacks on the Pars and Ras Lafan gas fields mark an escalation of the conflict with Iran from military confrontation to a battle for energy survival. Approximately 20% of global oil and LNG supplies face the risk of long-term disruption, and repairing damaged facilities could take years. European natural gas prices surged 35%, and Brent crude briefly broke through $110, indicating that the market has entered a state of extreme panic.
In the coming hours and weeks, whether Iran delivers on its promise of full retaliation, the duration of the Straits blockade, and the level of coordination among major powers will directly determine global energy prices, inflation levels, and the prospects for economic stability.
Investors and governments worldwide must be highly vigilant, as this Middle East crisis has evolved into a "nuclear-level" event for global energy and financial markets. Any misjudgment could trigger an unbearable chain of disasters. Whether calm thinking ultimately prevails may be the biggest variable determining the fate of the world in the coming months.
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