Europe's Gas Storage Levels Plummet Amid Hormuz Closure

Europe's gas storage levels are at their lowest in four years, just as winter approaches and prices surge due to Iran's closure of the Straits of Hormuz.

The Dutch TTF contract for September delivery is trading around €55-58 per megawatt-hour, compared to just €30 before the Middle East war and as low as €15-20 before the Ukraine conflict.

Analysts warn that supply risks remain elevated amid reduced LNG availability from the Middle East, which could lead to extreme gas scarcity during the winter period.

The European Union ended last winter with underground gas storage at only 28 percent, significantly lower than in previous years, and current levels are just 58 percent, according to Gas Infrastructure Europe.