EU Gas Prices Soar Amid Hormuz Disruptions

European natural gas prices surged to a fresh three-week high on Monday, reaching €62 per MWh amid ongoing supply disruptions from the Gulf. The spike in prices comes as US-Iran negotiations stall, with renewed Israeli strikes against Hezbollah in Lebanon and additional US sanctions threats clouding prospects for an imminent agreement to reopen the Strait of Hormuz.

The waterway's reduced traffic highlights persistent security risks, which have led to a sharp decline in shipments. Europe's gas inventories are now below historical averages, lagging pre-winter storage targets as heatwaves across Southern and Central Europe divert supplies from storage to meet boosted demand for gas-fired power generation.