Qatar's LNG exports collapse 96% as US-Iran war disrupts Gulf shipping
Six months after the outbreak of war between the United States and Iran, Qatar has emerged as one of the conflict's biggest economic casualties. The country's liquefied natural gas exports have fallen by 96%, according to data analyzed by Reuters and reported by multiple outlets. Since hostilities began, Qatar has exported just 18 LNG cargoes, compared with 509 during the same period a year earlier, representing a 96% collapse.
The cost to Qatar
The disruption is estimated to have cost Doha nearly $24 billion in revenue, the equivalent of approximately five months of government income based on 2025 figures. Reuters reported that Qatar lost nearly $24 billion in gas sales. The plunge in exports has forced the government to slash departmental budgets by up to 30% and reduce overseas aid spending by around 85%, according to a Financial Times report cited by Moneycontrol.
The International Monetary Fund has forecast that Qatar's economy will contract 8.6% this year. Tarik Yousef, a senior fellow at the Middle East Council on Global Affairs, told the Financial Times that the authorities were "seriously contemplating" further measures, though the full quote was not available.
Attacks on Ras Laffan
Qatar's LNG production was hit just days after the conflict began when an Iranian drone and missile attack targeted its Ras Laffan facility, the world's largest LNG export plant, according to the Financial Times report. Another missile attack in March reduced Qatar's export capacity by 17%. Repairs to the damage could take up to five years.
QatarEnergy first halted LNG production on March 2 after attacks hit energy facilities in Qatar. On March 4, the state-owned company formally declared force majeure to affected LNG buyers. The company later disclosed that continued Iranian attacks on its Ras Laffan production hub removed 12.8 million metric tons per year of LNG capacity, equivalent to about 17% of Qatar's LNG exports, QatarEnergy President and CEO Saad al-Kaabi said. The company estimated that repairs to the damaged trains could take three to five years and that the lost capacity represented about $20 billion in annual revenue.
Force majeure extended
QatarEnergy has reportedly extended force majeure notices on LNG supplies to buyers in Europe and Asia by another month, with shipment cancellations now stretching into the fall as traffic through the Strait of Hormuz remains severely restricted. Qatar's state-run company notified Pakistani buyers this week that LNG shipment cancellations will continue through October, people familiar with the matter told Bloomberg. The force majeure period for supplies to Bangladesh has also been extended beyond the end of September.
Italian energy company Edison, one of QatarEnergy's customers, reported that its cancellations had been extended into early November. Two other sources familiar with the situation said additional European traders had also begun receiving similar notices.
Shipping traffic through the Strait of Hormuz remains severely depressed, with only 10 vessels crossing the waterway on Wednesday, according to Kpler data.
Global market impact
Before the war, Qatar supplied nearly one-fifth of the world's daily LNG demand. Unlike several Gulf oil exporters that have managed to move some cargoes through the Strait of Hormuz, Qatar has few alternative routes for exporting its gas. About 93% of Qatar's LNG exports pass through the Strait of Hormuz.
US producers have increased exports to replace part of the missing Qatari supply, further strengthening America's position in the global LNG market. However, global gas markets remain vulnerable.
Europe is particularly exposed. The continent's gas reserves have fallen to a record low for this time of year, raising concerns that prices could surge if it experiences a harsh winter. Front-month natural gas futures at the Dutch TTF hub rose nearly 2% to €69.4 per megawatt-hour on Friday. Stronger cooling demand during a summer heat wave is slowing the pace of European gas inventory replenishment.
Qatar is the second-largest LNG exporter globally, with exports exceeding 112 billion cubic meters in 2025, per the IEA. The country has substantial financial buffers, including the $500 billion Qatar Investment Authority sovereign wealth fund, but its population of around 3.2 million means a relatively small domestic spending base.
Two Qatari LNG carriers have also reportedly been attacked, adding to the disruption.
As the war continues, the prolonged disruption to Qatar's LNG exports is reshaping global energy markets, with prices climbing and Europe bracing for a potentially difficult winter.