European Gas Prices Soar on US-Iran Conflict Fears

The escalating conflict between the US and Iran has sent European gas prices surging to their highest levels since 2023, driven by fears of severe disruptions to LNG supply through the Strait of Hormuz.

The front-month contract spiked to 79 euros per megawatt-hour (MWh), its highest level since 2023, as energy desks priced in an escalating geopolitical risk premium across European forward curves.

Meanwhile, the equivalent wholesale gas contract in Great Britain touched its highest level since late 2022, rising to 196 pence per therm and closing in on the psychologically critical 200p threshold.