European Gas Prices Soar Near Multi-Year Peaks Amid Persian Gulf Tensions
European natural gas prices have been holding near multi-year peaks due to supply risks and geopolitical tensions in the Persian Gulf. The benchmark price rose 0.5% to trade at 79.64 euros per megawatt-hour (MWh), nearing its highest level since 2023.
The escalating military conflict in the region, particularly after Iranian-backed Houthis launched strikes on Saudi Arabian cities, has increased concerns over global energy supply security. This has led to European utilities competing aggressively for uncommitted LNG cargoes with Asian buyers.
According to data from Gas Infrastructure Europe, underground storage facilities are filled to approximately 62% of capacity, trailing the five-year seasonal average by roughly 17 percentage points. This vulnerability comes at a critical juncture as the continent enters the home stretch of the summer storage injection season.