Energy infrastructure across the Middle East faced widespread disruptions on Monday after renewed hostilities between Iran, Israel and the United States triggered a series of precautionary shutdowns.
In Qatar, authorities suspended liquefied natural gas (LNG) production following drone activity targeting facilities linked to the Ras Laffan industrial complex. The country is responsible for roughly one-fifth of global LNG supply, making the halt a significant shock to energy markets in both Asia and Europe. State-run QatarEnergy was preparing to invoke force majeure on cargo deliveries as a result of the disruptions. Separately, drones struck the Mesaieed industrial area, home to key petrochemical installations.
The regional fallout extended to Saudi Arabia, where a drone incident prompted the precautionary suspension of operations at the Ras Tanura refinery, one of the kingdom’s largest domestic processing facilities and a vital export hub. Energy giant Saudi Aramco confirmed that the situation was contained after air defenses intercepted two drones. Minor fire damage was reported, but officials said domestic fuel supplies remained stable.
In northern Iraq, most oil output in the semi-autonomous Kurdistan region was halted as companies took preventive measures. Firms including DNO, Gulf Keystone Petroleum and Dana Gas suspended field operations despite no confirmed structural damage. The region typically exports crude through Turkey’s Ceyhan terminal.
Off the coast of Israel, major offshore gas production was temporarily shut down. The government directed Chevron to pause activity at the Leviathan field, which is undergoing expansion under a multibillion-dollar export arrangement with Egypt. Operations at the Tamar field and smaller sites managed by Energean were also halted as a safety measure.
Meanwhile, reports of explosions surfaced at Kharg Island in Iran, a strategic hub that processes the majority of the country’s crude exports. The extent of any damage remained unclear. Iran, one of the largest producers within OPEC, accounts for a notable share of global oil supply.
Markets reacted sharply to the escalating tensions. European gas prices surged, while crude oil climbed to multi-month highs amid fears that shipping through the Strait of Hormuz, a corridor that carries about 20% of global oil flows, could face prolonged disruption.
Analysts described the strike on Ras Tanura as a serious escalation, noting that Gulf energy facilities now appear increasingly exposed. Previous attacks on Saudi infrastructure, including the 2019 assault on Abqaiq and Khurais, demonstrated the market impact such incidents can trigger.
The latest developments raise concerns about deeper regional involvement and further instability in global energy supplies.
