Natural Gas Prices Surge Worldwide as Iran Conflict Crimps Supply

Disruptions to LNG production and shipping routes in the Middle East threaten a broader global energy crisis

Published on Mar. 4, 2026

Got story updates? Submit your updates here. ›

The conflict in Iran has sent natural gas prices soaring in Europe, thanks to a major gas exporter pausing production and key shipping routes closing, threatening a broader global energy crisis. The strikes on Iran by the United States and Israel, as well as Iran's counterattacks, have caused major disruptions across liquefied natural gas markets, causing prices to jump in regions, particularly Europe, that rely on imports.

Why it matters

The disruption in natural gas supply from the Middle East, particularly from major exporter Qatar, has significant implications for global energy markets. Europe and Asia, which rely heavily on LNG imports, are facing the prospect of critically low storage levels and skyrocketing prices that could lead to shortages and economic strain. The situation highlights the vulnerability of the global energy system to geopolitical conflicts.

The details

European natural gas futures have surged over 50% in recent days, reaching around $63 per megawatt. The Northeast Asia LNG benchmark also reached a one-year high. The price jump comes after Qatar's state-owned energy giant QatarEnergy suspended all LNG production following an Iranian drone attack on its facilities. Additionally, the conflict has prompted Iran's Islamic Revolutionary Guard Corps to effectively close the Strait of Hormuz to maritime vessels, shutting down a key global route for transporting oil and gas exports. Analysts warn that a monthlong pause in LNG transit through the strait could send European prices and spot Asia LNG to surge 130% to $25 per million British thermal units.

  • On Monday, QatarEnergy suspended all LNG production after an Iranian drone hit its facilities.
  • The Islamic Revolutionary Guard Corps has effectively closed the Strait of Hormuz to maritime vessels since the start of the conflict.

The players

QatarEnergy

Qatar's state-owned energy giant that suspended all LNG production on Monday after an Iranian drone hit its facilities.

Islamic Revolutionary Guard Corps

Iran's elite military force that has effectively closed the Strait of Hormuz to maritime vessels since the start of the conflict.

Got photos? Submit your photos here. ›

What they’re saying

“A monthlong pause in LNG transit supply through the strain could send European prices and spot Asia LNG to surge 130% to $25 per million British thermal units.”

— Goldman Sachs analysts (CNBC)

“They're getting a little lucky with the weather. Otherwise, they would probably have to import more LNG at a really significant premium in order to cover demand.”

— Ira Joseph, Senior research associate at Columbia Center on Global Energy Policy (Washington Examiner)

What’s next

President Donald Trump has revealed a plan to restart transportation of oil and gas through the Strait of Hormuz, offering financial and logistical support to shippers navigating the waters around Iran.

The takeaway

The disruption in natural gas supply from the Middle East due to the conflict in Iran has exposed the vulnerability of the global energy system to geopolitical tensions. The skyrocketing prices and potential shortages in Europe and Asia highlight the need for greater energy diversification and resilience to mitigate the impact of such supply chain disruptions.