Europe's Gas Prices Spike Amid Iran Sanctions and Strait of Hormuz Disruption
European natural gas prices have climbed to their highest level since January 2023 due to concerns over energy supplies from the Middle East. The Dutch TTF contract, widely used as Europe's benchmark for natural gas trading, rose nearly 4% on Monday and reached €68.45 ($79.85) per megawatt-hour.
The increase follows Washington's announcement of a broad sanctions campaign against Iran, which includes measures targeting sectors such as aviation, shipping, gold, technology, and digital assets. US Treasury Secretary Scott Bessent warned that institutions involved in money laundering for Iran could lose access to the US dollar system.
The Strait of Hormuz has been severely disrupted due to conflict, affecting Qatari LNG deliveries to Europe and creating uncertainty for buyers. As a result, European gas markets are particularly sensitive to developments around the Middle East.