Gas prices rose sharply in Britain and Europe after missile attacks on Qatar’s key energy infrastructure, raising new concerns over disruption to global supplies amid rising tensions between Iran and Israel.Wholesale gas prices rose nearly 25 per cent in early trading, taking UK prices to around 170-175p per therm. Although prices have since declined slightly, they remain more than double the levels seen before the conflict began.The increase comes after attacks on the Ras Laffan industrial city, the world’s largest liquefied natural gas (LNG) facility, raising fears of prolonged disruption to global energy supplies.

What is the reason for the rise in gas prices?

The latest surge was triggered by a series of counter-attacks. Israel targeted Iran’s South Pars gas field, home to one of the world’s largest natural gas reserves, in response to which Iran launched missile attacks on Qatar’s LNG facilities.The attacks caused “extensive damage” to infrastructure in Ras Laffan, including the Pearl Gas-to-Liquids Plant. A fire was reported but later brought under control, although production had already been halted due to prior attacks.Markets reacted sharply as Qatar plays a key role in global energy supply. The country accounts for about a fifth of the world’s LNG exports, making any disruption highly significant, especially for Europe, which has increased its reliance on Qatari gas after reducing imports from Russia.Analysts have warned that even a few months of disruption could wipe out a significant portion of global LNG supply, tightening the market and sending prices higher.

Trump issues warning to Iran

Amid the escalating crisis, US President Donald Trump issued a stern warning, threatening dire consequences if Iran continued targeting regional energy infrastructure.He reportedly warned that further attacks could escalate tensions on a larger scale, including possible attacks on Iran’s key gas assets.Meanwhile, the US has taken steps to stabilize energy flows, including temporarily easing shipping restrictions to allow more flexible transportation of oil and gas.

Global markets rallied as conflict deepens in Middle East

An energy shock has spread through the financial markets. Stock indices in Asia and Europe fell sharply, reflecting investor concerns over the prolonged conflict and its economic fallout.Oil prices also rose significantly, with Brent crude rising above US$110 a barrel at one point – the fastest since the conflict began.The situation is further complicated by disruptions in the Strait of Hormuz, a vital route for global oil shipments.