Satellite imagery captured firefighting and damage assessment at Saudi Arabia’s Ras Tanura oil refinery after an early March 2026 blaze. The image underscored how attacks are now striking major energy sites across the Gulf.
New drone and missile strikes recently hit a large oil refinery in Bahrain; the country’s official news agency said the missiles were fired by Iran. In a matter of days, energy infrastructure in at least six countries has been hit. Governments report strikes on refineries in Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, and Qatar’s Ras Laffan liquefied natural gas (LNG) export complex—the world’s largest—was also attacked. While many governments blame Iran for some strikes, Tehran has accused Israel of attacking a Saudi refinery. Analysts say the scope and simultaneity of these assaults is unprecedented in the region.
About a fifth of global LNG supply originates in Qatar. LNG is natural gas chilled to roughly −260°F so it can be shipped for power generation, heating and industrial uses. State-owned QatarEnergy halted production at Ras Laffan and declared force majeure, a contractual relief that suspends delivery obligations. Like other Gulf producers, QatarEnergy cannot bypass the Strait of Hormuz to move cargoes. Kayrros chief analyst Antoine Halff warns buyers in Asia and Europe may miss Qatari cargoes for weeks or longer. Israel has also paused some offshore gas production amid the fighting.
The world currently has a relative surplus of crude oil, but not of natural gas or LNG, industry experts note. Northern Hemisphere winter is ending while European gas storage remains low, making LNG flows especially important. Gerry Kepes of Competitive Energy Strategies says the shutdown of Gulf LNG may have a broader and more painful effect than a temporary halt to crude oil shipments. Simon Flowers of Wood Mackenzie cautioned that disruptions to gas and LNG could rival market shocks seen after Russia’s 2022 invasion of Ukraine.
Since the conflict began, European natural gas prices have climbed more than 60%, and Asian prices are up over 40%. Some producers outside the Gulf—in Australia, Malaysia and the United States—could try to redirect cargoes to cushion shortages in Asia and Europe. The U.S. is now the world’s largest LNG exporter, and new Gulf Coast export capacity is scheduled to come online this year and next. Still, most LNG plants run near full capacity and do not hold spare output that can be switched on quickly, limiting immediate relief.
Financial markets have already reflected the fallout: Australian producers Woodside and Santos and U.S. exporters Cheniere and Venture Global saw share gains following the escalation. But re-routing cargoes and bringing new export trains online take time. In the near term, disruptions to Gulf LNG supplies—combined with tight spare global capacity—create supply uncertainty and potential strain across gas markets worldwide.