European Gas Prices Soar Amid Strait of Hormuz Disruptions

European natural gas prices have reached their highest point in over three and a half years due to escalating tensions between the US and Iran. The conflict has disrupted liquefied natural gas (LNG) supplies from the Gulf, causing prices to rise by 4.5% to €76.7 ($89.1) per megawatt-hour.

The benchmark European gas contract, which serves as a key indicator of the region's energy market, has been affected by the reduction in LNG inflows. This has slowed down the pace of gas storage injections ahead of the winter heating season.

Qatar, one of the world's largest LNG exporters, has suspended shipments and extended force majeure on cargoes destined for European and Asian markets through the autumn. The Strait of Hormuz, a critical route for global oil and LNG supplies, remains disrupted due to the ongoing conflict between Tehran and Washington.