European Gas Prices Soar Amid Ongoing Middle East Tensions

European natural gas prices have soared to their highest level since mid-March, reaching €64.60 per megawatt-hour (MWh) on the Amsterdam exchange for delivery in one month.

This surge marks a 20% increase over the past two weeks and follows the Iran-US conflict that began in late February.

Before the escalation of tensions, prices stood at around €30 per MWh. Market concerns persist that energy commodity supplies from the Persian Gulf may not return to normal soon, with Iran demanding implementation of a framework agreement signed with the US in June as a condition for reopening the Strait of Hormuz.

European gas storage levels remain significantly below last year's levels, with facilities across Europe at 61.37% capacity on August 17, compared to nearly 74% a year earlier, according to Gas Infrastructure Europe (GIE).