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Qatar’s state-run energy firm says it has halted liquefied natural gas production after Iranian attacks, sending gas prices soaring in Europe, as Saudi Arabia announced it was temporarily shutting down some units of the Ras Tanura oil refinery located near the country’s eastern region after a fire broke out following a drone attack.

“Due to military attacks on QatarEnergy’s operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City in the State of Qatar, QatarEnergy has ceased production of liquefied natural gas (LNG) and associated products,” the world’s largest LNG producer said in a statement on Monday.

Shortly after the announcement, natural gas prices in Europe soared by almost 50 percent.

Earlier, Qatar’s Defence Ministry said the country was attacked by two drones launched from Iran. “One drone targeted a water tank belonging to a power plant in Mesaieed, and the other targeted an energy facility in Ras Laffan Industrial City, belonging to QatarEnergy, without reporting any human casualties,” it said in a statement.

“All damages and losses resulting from the attack will be assessed by the relevant authorities, and an official statement will be issued later,” it added.

The Saudi Ministry of Defence, in reports carried by the state-run Saudi Press Agency (SPA), said two drones had “attempted to attack” the Ras Tanura refinery on Monday morning, and that a “small” fire had broken out after they were intercepted.

Footage verified by Al Jazeera showed plumes of smoke rising from the oil facility, located on Saudi Arabia’s Gulf coast. The ministry said the refinery “sustained limited damage”, but there were no casualties.

Ras Tanura oil refinery, one of the world’s largest oil processing facilities located near the eastern city of Dammam, has a capacity of 550,000 barrels per day. The facility is home to one of the largest refineries in the Middle East and is considered a cornerstone of the kingdom’s energy sector.

The attacks come as oil tankers have been piling up on either side of the Strait of Hormuz, through which about a fifth of the world’s seaborne oil and the bulk of Qatari gas flows.

The maritime disruptions and fears of a prolonged conflict have led to a sharp rise in global oil prices, which will have a significant impact on the global economy.

Iran has been launching retaliatory strikes, mainly targeting Israel and military facilities of the United States across the Middle East, after the US and Israel launched massive air strikes on the country.

In a statement published by SPA, the Saudi Ministry of Energy said some operations had been halted as a “precautionary measure” and that it did not foresee “any impact on the supply of petroleum products to local markets”.

Saudi Arabia had earlier said it would “take all necessary measures to defend its security and protect its territory, citizens, and residents, including the option of responding to the aggression” after Iran targeted the capital Riyadh and the country’s eastern region with strikes over the weekend.

The US, Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates issued a joint statement on Sunday condemning Iranian attacks across the region and affirming their right to self-defence.

Rob Geist Pinfold, lecturer in defence studies at King’s College London, told Al Jazeera that Iran “knows exactly what it’s doing” by attacking the Gulf countries.

“These countries have less of an appetite for a fight because, at the end of the day, this is not their war. So, Iran is banking that they will want a ceasefire as soon as possible, that they will be pressuring the Trump administration. But we have no signs of that whatsoever so far,” he said.

Pinfold added that there seems to be a “show of force” and “of unity” coming from the Gulf states, at least rhetorically.

“They’re trying to get the message across that they are one and that they are united and that they are resilient,” Pinfold said. “But under the surface, there are profound disagreements here about how to engage with Iran and whether to engage with Iran at all.”

South Korean stocks shot up by the most in six years Tuesday, rebounding from the previous session’s deep trough, as investors brushed off concerns over the newly nominated Federal Reserve chair and went bargain hunting. The Korean won also rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 338.41 points, or 6.84 percent, to close at a new high of 5,288.08, a sharp upturn from the previous day’s plummet.

It marked the steepest daily increase since March 24, 2020, when the index rose by 8.6 percent, according to data provided by the Korea Exchange (KRX), South Korea’s main bourse operator.

Trade volume was heavy at 666.5 million shares worth 29.3 trillion won (US$20.3 billion). Winners outnumbered losers 825 to 75.

Strong buying demand triggered the KRX to temporarily suspend stock purchases in early trading.

The temporary halt in trading, also known as a “sidecar” in Korea, came a day after the bourse operator issued a sidecar for sell orders, with the KOSPI plunging by more than 5 percent.

The last time when the KRX consecutively issued a sell-side and a buy-side sidecar was on April 7 and 8, following U.S. President Donald Trump‘s announcement of sweeping tariffs, Lee Kyoung-min, an analyst from Daishin Securities, said.

“As there was no change in the market’s fundamentals, the benchmark index recovered on bargain hunting,” he said.

On a similar note, JP Morgan raised its target for the KOSPI to a range of 6,000 to 7,500 in a report released Tuesday, citing strong delivery in other sectors, such as defense and shipbuilding.

Foreign and Institutional investors turned net buyers, scooping up 703.3 billion won and 2.2 trillion won of equities, respectively. Retail investors sold off a net 2.9 trillion won.

Large-cap shares ended higher across the board.

Market top-cap Samsung Electronics soared 11.37 percent to 167,500 won, while its rival SK hynix advanced 9.28 percent to 907,000 won.

Defense giant Hanwha Aerospace rose 4.84 percent to 1,299,000 won, top carmaker Hyundai Motor added 2.82 percent 491,500 won, and major financial group KB Financial closed up 3.81 percent to 138,800 won.

The local currency was quoted at 1,445.4 won against the greenback at 3:30 p.m., up 18.9 won from the previous session.

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