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CommoditiesHigh Impact•10 March 2026•

1 min read

88% Gas Price Surge Triggers Global Shift to Coal Following Qatari LNG Disruption

Infographic of oil tankers and the Strait of Hormuz map with text showing a 9% oil price increase to 104.

Key Facts

1Newcastle coal prices jumped over 9% to $150/ton due to energy flow disruptions in the Gulf region.

2An IRGC drone attack shuttered Qatar's massive LNG export facility, which accounts for roughly 20% of global supply.

Global energy markets are reeling after a drone attack on a major Qatari LNG export facility caused a massive supply shock. The facility, which accounts for approximately 20% of global liquefied natural gas supply, was forced to shut down following the strike attributed to the IRGC. This disruption triggered an immediate 88% spike in natural gas prices, compelling global utilities to switch to coal for power generation. Consequently, Newcastle coal futures surged by over 9%, reaching $150 per ton as demand for substitute fuels intensified. Geopolitical tensions and slowed transit through the Strait of Hormuz are further exacerbating the strain on global energy flows. Investors are closely monitoring the situation as the loss of significant LNG capacity threatens to sustain high volatility across energy commodities and related instruments like XLE and UNG.