European Gas Prices Soar as Middle East Tensions Rise
Dutch natural gas prices spiked 4.7% on Monday to hit their highest level since March 19, 2026, as clashes between U.S. and Iranian forces in the Middle East heightened concerns over European supply security.
The benchmark Dutch front-month contract rose by 3.15 euros to 70.10 euros per megawatt-hour (MWh), surpassing the 70-euro threshold for the first time in over five months, amidst a sharp escalation of regional hostilities after U.S. forces conducted direct kinetic strikes against two Iranian rocket launchers.
The sudden military flare-up threatens to prolong the effective closure of the Strait of Hormuz, a transit corridor that historically carried roughly 20% of global liquefied natural gas (LNG) flows, primarily from major exporter Qatar, prompting competition between European utilities and Asian buyers for uncommitted spot LNG cargoes.