Europe Gas Prices Hit Three-Year High Amid Middle East War

Natural gas prices in Europe have reached a three-year high, exceeding €80 per megawatt-hour for the first time since January 2023. The surge comes as the war in the Middle East drives up energy costs, intensifying the threat to the region's economy just before winter sets in.

Benchmark Dutch futures rose by as much as 6.8% to €80.99, significantly higher than previous levels but still below the peaks reached during the 2023 energy crisis. Prices have more than doubled since the start of the war, and a prolonged spell at these levels would inevitably feed through to household and industrial energy bills.

This development is particularly concerning for Europe's already fragile economic outlook, as it will likely contribute to higher inflation and strain on households and businesses.