European Gas Prices Surge Amid US-Iran Tensions
European natural gas prices have surpassed EUR63 per megawatt-hour, reaching their highest point since January 2023. This surge is attributed to escalating U.S.-Iran tensions, which have raised concerns about the security of liquefied natural gas (LNG) supplies to Europe.
The U.S. military has launched its 13th consecutive nightly assault on Iran, with President Donald Trump warning Tehran and its Houthi partners in Yemen that they will face severe military consequences if they continue to attack ships in the Red Sea.
As a result of these tensions, gas prices in Europe have jumped over 10% in a week and more than 45% since early July. Additionally, a spell of unusually warm weather across Europe has increased electricity usage for cooling, leading to higher gas consumption.
Equinor, the continent's largest gas provider, has cautioned that Europe may not meet its 80% storage target before the heating season begins, making the market more vulnerable to price fluctuations.