European Gas Prices Soar Above €70 Amid Gulf Tensions

The European benchmark Dutch TTF gas price surged above €70 per megawatt-hour on Monday, jumping more than 5% after midday in Europe.

This increase comes as uncertainty over liquefied natural gas (LNG) supplies from the Gulf puts upward pressure on prices. The Strait of Hormuz, through which roughly one-fifth of global LNG trade normally passes, remains effectively closed due to US-Iran tensions.

EU gas storage facilities are only 64.7% full, leaving inventories below historical levels for this time of year. High market prices have slowed the refilling process in many countries, raising concerns that Germany and the Netherlands may miss their gas-storage targets by November 1st.

German gas storage association INES warned that insufficiently filled facilities could leave the country vulnerable to volatile market prices or disruptions to global supplies, which could cause substantial economic damage. Italy is also facing risks to its gas supply, with QatarEnergy extending a force majeure suspension of LNG deliveries to Edison until early November.