India, Europe feel fuel crunch as Gulf gas supplies disrupted amid war

Europe is facing a surge in energy prices due to disruptions in Middle Eastern oil and natural gas production stemming from escalating conflict involving Iran. The Dutch TTF, Europe's benchmark natural gas price, significantly increased following reports of supply disruptions and attacks on energy facilities, including those of QatarEnergy, which suspended LNG production. This situation compounds existing high energy costs in the EU resulting from sanctions on Russia after the invasion of Ukraine, impacting the competitiveness of European manufacturers. Analysts warn of further strain on European industry due to the renewed energy market turbulence, particularly as EU gas storage levels are lower than in previous years. Experts are urging the EU to accelerate the transition to renewable energy to reduce reliance on imported fossil fuels and vulnerability to geopolitical shocks.

On March 2, 2026, QatarEnergy halted liquefied natural gas (LNG) production following drone attacks on its facilities in Ras Laffan Industrial City and Mesaieed Industrial City, Qatar. The Qatari Defence Ministry attributed the attacks to Iran, stating that two drones targeted a water tank and an energy facility. Simultaneously, Saudi Arabia temporarily shut down units at the Ras Tanura oil refinery after a drone attack caused a fire. The Saudi Ministry of Defence reported that two drones attempted to attack the refinery, resulting in limited damage and no casualties. As a result of the production halt in Qatar, natural gas prices in Europe soared by almost 50 percent.