European Gas Prices Surge on LNG Supply Disruptions and Strait of Hormuz Risks

European natural gas prices rose by 13.2% on Friday as disruptions to liquefied natural gas (LNG) supplies from the Persian Gulf and security risks in the Strait of Hormuz heightened concerns over global gas flows.

The front-month October contract at the Dutch TTF hub, Europe's benchmark for natural gas pricing, settled at €71.95 per megawatt-hour last Friday and was trading at €81.48 per MWh on Friday afternoon.

Geopolitical risks have remained a key driver of international gas prices, with ongoing disruptions to LNG supplies from the Persian Gulf contributing to the market's anxiety.

The Strait of Hormuz, through which around 20% of global LNG flows, has seen reduced levels of oil tanker traffic due to escalating military tensions in the region, further exacerbating supply concerns.