EU Gas Prices Soar Amid Escalating US-Iran Conflict

European gas prices have hit a three-year high after rising above €75/MWh at the TTF hub in the Netherlands. This marks the highest level since early 2023, according to recent data.

The surge in gas prices has put pressure on European bond markets, with inflation accelerating to 3.3 per cent in August. Energy prices have increased by 14.3 per cent during this period.

Mike Bell, head of market strategy at RBC BlueBay Asset Management, stated that the perception of a resolution to the conflict between the US and Iran is fading fast. This has led to a rise in oil and gas prices, causing concern over prolonged inflation.