2026.03.0212:52:24UTC+00UK Gas Jumps 40% as Qatar Halts LNG Production

UK natural gas futures surged more than 40% on Monday to 115 pence per therm, their highest level since February 2025, after QatarEnergy halted LNG production in the industrial hubs of Ras Laffan and Mesaieed. The shutdown followed reports from Qatar’s Defense Ministry that two Iranian drones had struck energy facilities earlier in the day.

The escalation came in the wake of US strikes on Iranian territory, which prompted Tehran to retaliate with attacks on Washington’s regional allies. At the same time, investors closely watched mounting disruptions to traffic through the Strait of Hormuz, a critical chokepoint for global energy flows.

The strait handles around one-fifth of worldwide LNG trade, including significant volumes from Qatar, which supplies roughly 15% of Europe’s LNG imports. With UK gas storage levels under 30% of capacity at the end of February, the domestic market remains acutely exposed to external supply shocks.