European natural gas prices surged more than 20% at the start of the week as escalating tensions in the Middle East rattled energy markets and raised fears of supply disruptions.
Joint US and Israeli strikes on Iran, followed by Tehran's retaliation, have sharply curtailed tanker traffic through the Strait of Hormuz, a vital corridor for global oil and liquefied natural gas (LNG) shipments.
At the Dutch Title Transfer Facility (TTF), Europe's benchmark gas hub, the April contract was trading at €39.20 per megawatt-hour at 10.41 a.m. local time (0741 GMT), up from €31.95 on Feb. 27 before the strikes.
The move pushed prices to their highest level since Feb. 18, 2025, when they reached €38.70 per megawatt-hour, and marked the sharpest percentage jump since August 2023.
The Strait of Hormuz, which links energy producers in the Persian Gulf to global markets via the Arabian Sea, handles roughly 20% of global oil and LNG trade. Nearly all of Qatar's LNG exports transit the narrow waterway, making it a critical route for international supply.
Although much of the LNG passing through the strait heads to Asia, particularly China, the risk of prolonged disruption is lifting prices worldwide, especially in Europe, which relies heavily on imported LNG.
Lower storage levels are adding to the pressure. European gas inventories have fallen below 30%, increasing the urgency for buyers to secure additional cargoes if supply risks intensify.
Reporting by Nuran Erkul in London
Writing by Handan Kazanci
Anadolu Agency
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