Stories

Thu, 19 Mar 2026

Thu, 19 Mar 2026 Why are gas prices soaring?

Analysts fear the disruption to supply could continue for longer than initially thought.

* Qatar's Ras Laffan gas field, which produces about one-fifth of the world's liquefied natural gas (LNG), has been hit by two missile attacks, causing extensive damage and disrupting global gas supplies.
* The attack on Ras Laffan, carried out by Iran, follows reports that Israel launched strikes on a petrochemical complex in Iran earlier this week.
* As a result of the attack, gas prices have surged globally, with UK gas prices increasing by 22% to 170p per therm and European gas prices rising by 20%.
* Energy analysts warn that the latest attacks mark an escalation in the conflict and could lead to long-term disruptions to supply, fundamentally reshaping the global LNG outlook.
* The attack has also raised concerns about the potential impact on electricity prices, as gas is used as a "marginal source of power" in the UK's energy mix.
* Experts warn that prices are likely to rise further, with some predicting that they could be off the charts seen after Russia's invasion of Ukraine.
* The UK government may need to intervene with a plan for energy security and protection from higher prices as the market adjusts to the new reality.