European natural gas futures are spiking 42 per cent in the wake of the shutdown of a major supplier of ship-born gas due to the fighting in the Middle East.
The futures contract for April delivery shot up to 45.46 euros (USD 53.26) on the ICE commodities exchange. The jump came after QatarEnergy said Monday it would stop its production of liquified natural gas as the Mideast war rages. The state-owned firm blamed the war for the decision.
Qatar is a major gas supplier for Europe, which relies on shipments of liquefied gas, or LNG, to replace supplies of Russian pipeline gas lost due to the invasion of Ukraine.
Shipping has been disrupted in the Strait of Hormuz, a key route for LNG tankers from the Persian Gulf.