Households and businesses across Europe are facing the prospect of sharply higher energy bills after gas prices surged dramatically on Monday in the wake of escalating military conflict in the Middle East. The European benchmark gas price jumped 41% to €45 per megawatt hour in a single trading session, while UK gas prices rose 40% to 110p a therm — movements that energy experts say could translate directly into higher bills for consumers.
The immediate trigger was the announcement by QatarEnergy that it had halted production at its Ras Laffan and Mesaieed facilities following drone attacks. Qatar is a critical supplier of LNG to both European and Asian markets, and the suspension of its operations threatens to remove close to a fifth of global LNG supply from the market. Energy analysts noted that Qatar supplied around 6.5% of UK LNG imports over the past year.
The knock-on effects of the Qatari shutdown could prove especially painful for Europe. Asian buyers who normally receive Qatari LNG may be forced to compete on the open market with European buyers, driving up prices across both regions. With Europe still exposed to energy market volatility following the 2022 crisis, any sustained rise in gas prices risks reversing progress made in reducing household energy costs.
Oil prices compounded the pressure on consumers by rising sharply as well. Brent crude climbed as high as $82 per barrel before easing slightly to around $77. Fuel analysts warned UK motorists that petrol prices, which were already edging higher, could climb significantly further depending on how long elevated oil prices persist. Estimates ranged from 136p per litre if oil stays at $80, to nearly 150p if prices reach $100 a barrel.
Energy market experts described the price spike as a serious warning sign. They pointed out that both the Strait of Hormuz and the Suez Canal — two of the most important arteries of global trade — are now effectively disrupted. With shipping giants suspending transits and tankers unable to move freely, the combination of lost LNG supply and blocked oil routes creates compounding risks for energy prices in the months ahead.