Gas prices soared on Monday, and oil jumped sharply as the US-Israel war in Iran disrupted energy production and supplies worldwide. QatarEnergy, the state-owned energy company, halted liquefied natural gas (LNG) production after attacks on its Ras Laffan and Mesaieed facilities. A drone struck the Ras Laffan site, the Qatari defense ministry said. No casualties were reported. The shutdown at one of the world’s largest LNG export facilities could reduce nearly 20% of global supply. Markets are still recovering from the energy crisis of 2022, and analysts warn that this disruption will intensify competition for gas across Europe and Asia. The Dutch day-ahead gas benchmark jumped 41% to €45 per megawatt hour (MWh), up from €32 on Friday. In the UK, the day-ahead contract rose 40% to 110p per therm. While Qatar provided about 6.5% of UK LNG imports last year, the sudden halt threatens to push Asian buyers into direct competition with Europe, driving prices higher. Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, warned that the spike “could raise bills for homes and businesses in the UK again.” The conflict also pushed oil prices higher. Brent crude rose as much as 13% in early trading to $82 a barrel, a 14-month high. Concerns over the effective closure of the Strait of Hormuz, a key route for global oil trade, intensified fears about supply shortages. Brent later fell slightly but remained nearly 6% higher at $77 a barrel by Monday afternoon. Global stock markets responded to the energy turmoil. London’s FTSE 100 dropped 1.2% to 10,780 points. Airline shares were among the worst performers, with IAG, the parent company of British Airways, down 6%, and easyJet down 4%, as thousands of flights were canceled. In contrast, energy and defense stocks gained. BP and Shell shares rose about 3% on higher oil prices, while BAE Systems increased 5% as investors sought safe-haven investments during geopolitical uncertainty. Other European markets fell sharply: Germany’s DAX dropped 2.4%, France’s CAC 40 fell 2.2%, Italy’s FTSE MIB was down 2%, and Spain’s Ibex declined 2.6%. Wall Street also opened lower in response to the crisis. Asian markets reacted to the weekend’s developments as well. Tokyo’s Nikkei 225 fell 2.4% initially, later closing down 1.4%. Sydney’s ASX 200 opened sharply lower but ended flat, while China’s Shenzhen Composite declined 0.7%. Investors turned to gold as a safe-haven asset. Prices rose 2.5%, reaching $5,408 per ounce. The military conflict shows no sign of slowing. US and Israeli strikes on Iran continue, with Donald Trump suggesting the operations could last another four weeks. Trump stated that attacks would continue until America’s objectives were fully met, signaling prolonged uncertainty in global energy markets. The escalation of the Iran war has created a ripple effect across global markets. Energy costs are rising, airlines face operational disruptions, and investors are moving to safer assets like gold and defense stocks. Analysts warn that continued conflict could lead to even higher gas and oil prices, affecting households and businesses worldwide.