(Bloomberg) — Oil and natural gas prices surged after a series of strikes targeted critical energy infrastructure across the Persian Gulf, raising concerns about prolonged supply disruptions.
Qatar’s Ras Laffan Industrial City — home to the world’s largest liquefied natural gas (LNG) export complex — sustained “extensive damage” following an Iranian missile strike, according to QatarEnergy. The attack triggered fires and threatens longer-term outages at a facility central to global LNG supply.
Additional incidents were reported across the region. In Saudi Arabia, a drone strike and missile interception disrupted operations near the Yanbu export hub on the Red Sea, a key outlet for crude shipments amid the closure of the Strait of Hormuz. In the United Arab Emirates, the Habshan gas processing complex was shut after debris from intercepted strikes fell on the site.
Kuwait also reported fires at two major refineries — Mina Al-Ahmadi and Mina Abdullah — following drone attacks. Both incidents were contained, but highlight the growing exposure of downstream infrastructure.
See also: Iran escalates drone attacks on Saudi oil infrastructure, raising Gulf supply risks
The escalation marks a widening of the conflict to include both upstream and downstream assets, increasing the risk of sustained supply losses. Damage assessments are ongoing, but analysts warn that repairs at major facilities could take months, tightening global balances.
Brent crude approached $120/bbl, while European gas prices surged, reflecting both physical disruptions and heightened geopolitical risk. With tanker traffic through the Strait of Hormuz largely halted, alternative export routes such as Saudi Arabia’s Red Sea corridor are under increasing strain.
While some facilities remain operational, continued targeting of key hubs — including LNG plants, refineries and export terminals — could remove significant volumes from global markets if attacks persist.
