2026.03.0407:34:03UTC+00EU Natural Gas Extends Rally

European natural gas futures jumped more than 5% to above €56/MWh, extending their rally to reach a more than three-year high. Prices have surged 60% in just two days following the shutdown of Qatar’s LNG facilities and the closure of the Strait of Hormuz amid escalating tensions in the Middle East.

On Monday, QatarEnergy fully suspended production at its Ras Laffan LNG complex, the world’s largest LNG export hub, which supplies nearly 20% of global LNG. At the same time, the Strait of Hormuz, a critical transit corridor for Qatari LNG shipments, has been effectively closed, further constraining flows from other major producers in the region.

These disruptions are adding pressure to Europe’s already depleted winter gas inventories and heightening worries about the continent’s ability to rebuild storage levels ahead of next winter. Meanwhile, China, the world’s largest LNG importer, has reportedly urged all parties involved in the Iran conflict to ensure the safe passage of vessels through the Strait and to avoid any actions that could further impede Qatari LNG exports.