Natural gas prices spiked by nearly 50% on Monday after QatarEnergy, one of the world's biggest exporters, halted production following "military attacks" on its facilities. BBC reported.
Brent crude, the global benchmark for oil prices, jumped by 10% to touch more than $82 a barrel on Monday after at least three ships were attacked near the Strait of Hormuz at the weekend.
Iran warned vessels not to pass through the crucial waterway in the south of the country, through which about 20% of the world's oil and gas is shipped.
In London, the FTSE 100 share index fell 1%, with the owner of British Airways among the biggest fallers following the disruption to Middle East airspace.
Banks such as Barclays, Standard Chartered and HSBC also saw their share prices slide due to concerns that a sustained rise in energy prices risks fueling inflation which, in turn, could lead to fewer interest rate cuts by central banks.
Leading stock markets in Europe sustained bigger drops. In France, the CAC-40 fell by 1.8% while Germany's Dax extended earlier declines to fall by 2.1% in early afternoon trading.
Meanwhile, the price of gold, which is viewed as a safe-haven asset during periods of uncertainty, added 2% to $5,388 an ounce.
QatarEnergy, which is owned by the state, said that it had suspended producing liquefied natural gas (LNG) after the country's Ministry of Defence (MoD) said a drone launched from Iran targeted a facility in Ras Laffan Industrial City.
Qatar's MoD also said a drone went after a water tank belonging to a power plant in Mesaieed, south of the capital Doha.
