European Gas Prices Soar 35% Following Iranian Attacks on Qatar's Largest LNG Facility

2026-03-19 dutchnews

Amsterdam, 19 March 2026
Gas prices across Europe have rocketed by 35% after Iran struck Qatar’s Ras Laffan facility, the world’s largest liquefied natural gas export terminal, in retaliation for Israeli attacks on Iranian gas fields. The assault has caused ‘significant damage’ to the facility, with experts warning of potential global gas shortages. Iran has also virtually closed the Strait of Hormuz to LNG tankers, blocking a fifth of the world’s gas transport. Dutch consumers face immediate price increases, with gas now costing €1.41 per cubic metre, while the Netherlands’ gas reserves have dropped to a critically low 7%.

Immediate Market Impact and Price Surge

The Amsterdam gas exchange, which serves as the benchmark for European gas pricing, witnessed extraordinary volatility on Thursday morning as prices surged by 35% following the Iranian attacks [1]. The TTF contract price climbed to €70 per megawatt-hour, representing a 27% increase from the previous day, before settling at €63 per megawatt-hour - still 15% higher than Wednesday’s closing price [7]. This dramatic price movement reflects the market’s immediate response to supply disruption fears, with the gas price now reaching levels not seen since early 2023 [4]. The current price of approximately €70 per megawatt-hour represents more than double the pre-conflict level of €30 per megawatt-hour [4].

Critical Infrastructure Under Attack

The Iranian retaliation targeted Qatar’s Ras Laffan facility, which Qatar Energy confirmed has sustained ‘significant damage’ [1]. This facility represents the world’s largest export hub for liquefied natural gas, making Qatar a crucial supplier to European markets [1]. The attacks came as Iran’s response to Israeli strikes on the South Pars gas field, which produces approximately 70% of Iran’s natural gas and is shared between Iran and Qatar [1]. Beyond Qatar, Iranian forces have also struck gas installations in Abu Dhabi, expanding the geographical scope of the energy infrastructure assault [4]. The strategic nature of these targets underscores the vulnerability of global energy supply chains to geopolitical conflicts.

Transport Routes Severely Disrupted

Iran has virtually closed the Strait of Hormuz to LNG tankers, creating a critical bottleneck in global gas transport [1][4]. This maritime chokepoint typically handles one-fifth of the world’s LNG traffic, making its closure a significant threat to global energy security [1][4]. The disruption compounds the supply concerns already triggered by the physical damage to production facilities. Energy analysts warn that even if hostilities cease, the restoration of gas supplies will require considerable time, as damaged infrastructure must be rebuilt and normal shipping routes re-established [7]. The combination of production facility damage and transport route closures creates a dual supply shock that markets are struggling to price effectively.

Immediate Consumer Impact in the Netherlands

Dutch consumers are experiencing immediate price increases, with gas costs rising to €1.41 per cubic metre including energy tax and VAT [2]. Petrol stations have already adjusted prices, with Euro95 reaching €2.541 per litre and diesel climbing to €2.568 per litre [4]. The diesel price for agricultural users has surged even more dramatically, increasing by €20 to €199.50 per 100-litre barrel - an 11% increase that represents a new record since the Middle East conflict began [7]. These price increases will affect households differently depending on their contract types, with those on dynamic contracts experiencing immediate cost impacts whilst fixed-contract customers remain temporarily insulated [1][3]. The timing proves particularly challenging as Dutch gas reserves have fallen to a critically low 7.2% capacity [4][7], leaving the country vulnerable to further supply disruptions.

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