UK natural gas futures jumped 26% to above 143 pence per therm on Tuesday, their highest level since January 2023, after Qatar suspended LNG production at its Ras Laffan complex following an Iranian drone strike. The shutdown of a facility that supplies roughly one-fifth of the world’s LNG roiled energy markets and built on a 45% surge in the previous session.
The UK is especially vulnerable because of its limited gas storage and heavy dependence on imports, with domestic inventories below 30% at the end of February. Flows through the Strait of Hormuz had already slowed, heightening fears of more extensive disruptions across the Middle East. While most Qatari LNG is shipped to Asia, any prolonged outage is expected to sharpen global competition for cargoes and push prices higher in Europe as the region races to replenish depleted stocks ahead of winter.
