Gas prices in UK and Europe soar after strikes on energy facilities in Qatar and Iran

Gas prices across the UK and Europe surged sharply following escalating military strikes on key energy infrastructure in the Middle East, raising fresh concerns about global supply stability and economic ripple effects.

In early trading on Thursday, gas prices jumped by more than 25% before easing slightly later in the day. Despite the pullback, prices remain more than double their levels prior to the outbreak of hostilities involving Iran, the United States, and Israel, according to market analysts.

The spike follows a series of direct attacks on major gas facilities. Iran launched strikes on the Ras Laffan gas plant in Qatar, reportedly causing extensive damage. The move was described as retaliation after Israel targeted Iran’s South Pars gas field, a critical offshore energy site shared between Iran and Qatar.

The escalation has widened across the region. In the United Arab Emirates, both the Habshan gas facility and the Bab oil field have been shut down after sustaining damage from Iranian strikes. Meanwhile, Saudi Arabia said it successfully intercepted attempted attacks in its eastern region and in the capital, Riyadh, preventing further disruption.

Amid the growing crisis, Donald Trump stated that the United States had no prior knowledge of Israel’s strike on the South Pars field. He also issued a warning to Iran against carrying out additional attacks on Qatar, signaling the risk of further geopolitical escalation.

Military exchanges between Iran and Israel have continued, with the Israeli military reporting incoming fire from Iran. While emergency services have not confirmed new casualties, tensions remain high following Israel’s announcement that it had begun air strikes on targets in northern Iran—marking a significant expansion of its operations.

A critical flashpoint now centers on the Strait of Hormuz, one of the world’s most vital energy transit routes. Iranian lawmakers are reportedly considering imposing tolls on countries transporting goods through the strait. The waterway handles roughly 20% of global energy supplies, but shipping activity has effectively halted after Iran threatened to target vessels passing through.

Despite the volatility, analysts note that energy markets are beginning to adjust to the rapidly evolving situation. However, the ongoing disruptions—and the strategic importance of the affected infrastructure—suggest that prices could remain elevated in the near term, even as diplomatic efforts intensify to stabilize the region.