India, Europe feel fuel crunch as Gulf gas supplies disrupted amid war
Al Jazeera
March 3, 2026
AI-Generated Deep Dive Summary
Qatar's suspension of liquefied natural gas (LNG) production has sent shockwaves through global energy markets, particularly affecting India and Europe. With Qatar being one of the top LNG exporters, the halt in production has led to significant supply disruptions. Indian companies have already reduced gas supplies to industries, anticipating tighter Middle Eastern exports. European gas prices have surged by over 30% since the U.S.-Israeli conflict with Iran began, exacerbating an already strained market.
India, a major importer of LNG, relies heavily on Middle Eastern suppliers like Qatar and Abu Dhabi National Oil Company. The supply cuts range from 10% to 30%, prompting Indian companies such as Petronet LNG Ltd., GAIL (India), and IOC to seek alternative solutions through spot tenders despite soaring spot prices and logistics costs.
The conflict has spilled into the Strait of Hormuz, a critical energy chokepoint. QatarEnergy's declaration of force majeure after drone attacks highlights the broader impact on global gas markets. With Qatar accounting for 20% of global LNG exports, its production halt has led to supply shortfalls and price hikes worldwide.
European markets have been particularly affected, with natural gas prices surging by over 33%. The conflict's intensity and lack of diplomatic resolution suggest a prolonged crisis, potentially reshaping global energy dynamics. As the U.S.-Israeli operations against Iran continue, concerns about extended military actions and their impact on oil and gas supplies persist.
The situation underscores vulnerabilities in global energy markets, particularly reliance on key suppliers like Qatar. For India and Europe, this disruption highlights the need for diversification of energy sources to mitigate future supply chain risks
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Originally published on Al Jazeera on 3/3/2026