European Gas Prices Spike 5% as Middle East Disruptions Bite

European and British wholesale natural gas prices surged nearly 5% on Monday, breaking through major psychological resistance levels to touch fresh 2022 high watermarks.

The British NBP wholesale gas contract jumped almost 5% to breach the key 200.00 pence mark, trading firmly above the barrier at 201.50p per therm and touching its highest level since late 2022.

The Dutch front-month TTF contract gained roughly 5% to trade at 83.40 euros per megawatt-hour (MWh), also surging to fresh multi-year peaks as trading desks scrambled to reprice geopolitical risk across the forward curve.

JERA's Global CEO and Chair, Yukio Kani, warned that Europe's gas reserves remain low and that shipping disruptions around the Strait of Hormuz could be prolonged.