European Natural Gas Prices Hold Near Multi-Year Peaks Amid Persian Gulf Tensions

The European natural gas market is holding near multi-year highs due to supply risks and geopolitical tensions in the Persian Gulf. The benchmark Dutch front-month contract rose by 0.5% to trade at 79.64 euros per megawatt-hour, remaining close to its highest level since 2023.

In Great Britain, the equivalent price gained 0.6% to trade at 198.00 pence per therm, nearing its highest point since late 2022 and approaching the psychologically significant 200 p threshold.

The escalating conflict in the Persian Gulf has raised concerns about global energy supply security ahead of winter. The Strait of Hormuz, a critical bottleneck that handles around 20% of global liquefied natural gas (LNG) traffic, is at risk of shipping restrictions or naval blockades.