A missile attack by Iran has damaged the world's largest liquefied natural gas (LNG) export facility, intensifying concerns over persistent global supply constraints and triggering a sharp spike in European gas prices. Benchmark gas futures surged by as much as 35% on Thursday, more than doubling from pre-conflict levels. Markets are bracing for sustained impacts on this critical LNG hub, which accounts for approximately one-fifth of global LNG supply.

QatarEnergy reported that multiple LNG facilities within its Ras Laffan industrial complex were struck by missiles, "igniting fires and causing extensive further damage." Although shipments from the LNG plant had already been halted earlier this month due to the war, the latest attack is likely to keep European and Asian gas prices elevated for a longer period.

"This could be a disruptive event for the LNG industry, comparable to the attack on the Nord Stream pipeline, or possibly worse," said Susan Sackmar, a visiting assistant professor at the University of Houston Law Center. "This is a sudden supply disruption with no indication that Qatar can restart operations soon."

The Habshan gas facility in Abu Dhabi was also shut down after falling debris following intercepted attacks. U.S. President Donald Trump stated on social media that the United States would retaliate if Qatar's LNG facilities are attacked again.

Full details regarding the extent of the damage and the timeline for repairs remain unclear. While Asian nations purchase the majority of Middle Eastern LNG exports, any prolonged supply disruption will tighten the global supply-demand balance, driving up gas prices worldwide.

For Europe, the escalation comes at a challenging time—the region is emerging from winter with depleted gas reserves. This means Europe will need to purchase more LNG shipments this summer to replenish stocks, competing with Asian buyers for already reduced supplies.

"Qatar's LNG could theoretically be offline for months, or even years in a worst-case scenario," said Arne Roman Rasmussen, chief analyst at Global Risk Management. "For the gas market, the crisis will not end just because the war stops and the Strait of Hormuz reopens."

The Ras Laffan facility had already been shut down earlier this month following an Iranian drone strike, marking the first supply disruption in its three decades of operation. Now, after retaliatory strikes by Iran on Wednesday in response to an Israeli attack on the vast South Pars gas field, the complex has suffered "extensive damage," according to Qatari officials, further dimming prospects for a swift return to normal operations.

At the time of writing, Europe's benchmark gas price, the Dutch front-month futures contract, had risen 25.58% to €68.73 per megawatt-hour.