Iran strikes halt major oil and gas output across Middle East

Qatar has suspended production of liquefied natural gas (LNG) amid escalating military exchanges between Israel, the United States and Iran, as reported by The Arab Weekly and agencies on March 2nd.

Consequently triggering precautionary shutdowns of major energy facilities across the Middle East and sending oil prices sharply higher.

State-owned QatarEnergy halted LNG output after two Iranian drones reportedly targeted one of its facilities. Qatar accounts for roughly 20 percent of global LNG supply and is the world’s second-largest exporter after the United States, making the move significant for global energy markets.

In Saudi Arabia, the kingdom shut down its 550,000 barrels-per-day Ras Tanura refinery following a drone incident. The facility, operated by Saudi Aramco, is part of a critical export complex on the Gulf coast. Saudi officials said two drones were intercepted and debris caused a limited fire, but no injuries were reported, and the domestic fuel supply remains unaffected.

Energy disruptions extended across the region. In Iraqi Kurdistan, companies including DNO, Gulf Keystone Petroleum, and Dana Gas suspended production as a precaution, halting roughly 200,000 barrels per day of exports via Turkey. Offshore Israel, authorities instructed Chevron to temporarily close the Leviathan gas field, one of the country’s largest gas reserves, while Energean shut down output at smaller fields.

Oil prices surged as much as 13 percent intraday, climbing above $82 per barrel — the highest level since January 2025 — as attacks disrupted shipping in the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil supply flows.

Explosions were also reported near Iran’s Kharg Island, which handles around 90 percent of the country’s crude exports. Iran, the third-largest producer in OPEC, pumps approximately 3.3 million barrels of crude per day.

Analysts warn that the targeting of Gulf energy infrastructure marks a dangerous escalation that could further destabilise global supply chains. Saudi facilities have previously been attacked, most notably in 2019 when strikes on Abqaiq and Khurais temporarily cut the kingdom’s crude production in half.

With multiple producers curbing output and shipping routes under threat, markets remain on edge as the conflict enters its third day.

The Arab Weekly plus agencies, Maghrebi.org