European Gas Prices Soar Above €79 as LNG Shipments Are Disrupted

European natural gas prices have reached their highest level since early 2023, trading above €79 per megawatt-hour on Wednesday morning.

The front-month Dutch TTF contract has been influenced by concerns over LNG shipments through the Strait of Hormuz due to fighting between the US and Iran.

This conflict has blocked LNG shipments for several months, affecting about 20% of global trade.

As a result, near-term prices have increased while markets expect supply conditions to improve later in the year, weakening the incentive to refill storage in certain European countries.

Eurozone inflation reached 3.3% in August largely due to higher energy prices.