European Gas Prices Soar to Three-Year High Amid War Fears
European natural gas prices have reached their highest level since early 2023 due to war fears and disruptions in maritime shipping through the Strait of Hormuz.
The benchmark Dutch TTF gas futures contract rose by over 6% to top €74 per megawatt-hour, while Brent crude oil surged to a multi-week high at $94.65 per barrel and US West Texas Intermediate (WTI) crude gained over 5% to reach $90.22 per barrel.
The market shock follows new US military strikes against targets inside Iran, including positions near the strategic Strait of Hormuz, which was met by Iranian counter-strikes targeting US military installations across the region.
European gas storage facilities are currently filled to roughly 63-65% capacity, making it increasingly difficult for European nations to replenish reserves ahead of the winter heating season amid supply reductions from Qatar and other Gulf exporters.