Commodities
European Gas Prices Soar Amid US-Iran Tensions
European natural gas prices surged to their highest level in over three and a half years due to escalating tensions between the US and Iran. The benchmark European gas contract rose by 4.5% to €76.7 ($89.1) per megawatt-hour as of 1720GMT on Tuesday.
The Strait of Hormuz, a critical route for global oil and liquefied natural gas (LNG) supplies, remains blocked due to the ongoing conflict. Iran warned that energy infrastructure in the region could be vulnerable to additional attacks, affecting US oil and gas facilities.
Qatar has largely suspended LNG shipments, including those bound for European and Asian markets through autumn. This reduction in supply has slowed down gas storage injections in Europe ahead of the winter heating season.