Europe Gas Prices Hit Highest Level Since 2023 Amid Middle East Supply Fears

European gas prices have surged to their highest level since January 2023, driven by concerns over Middle East supply. The front-month Dutch TTF gas contract was trading at €69.90 per megawatt-hour (MWh) on Tuesday morning, up 4.4% from Friday's close of €66.97.

EU gas storage facilities are currently only 64.7% full, leaving inventories below historical levels for this time of year. Analysts warn that low storage levels and uncertainty over LNG supplies from the Persian Gulf will continue to put upward pressure on prices.

The milder weather forecasts for early September may curb near-term demand, but geopolitical tensions in the region are adding to supply concerns. The US military's strikes on Lark Island have raised worries about LNG exports from major Persian Gulf producers, particularly Qatar, tightening the global LNG market.