Hormuz Crisis Sends European Gas Prices Soaring

European natural gas prices continued their upward trend on Tuesday, reaching €61.5 per MWh, as hopes for a resolution to the Strait of Hormuz crisis began to fade.

The standoff between the US and Iran has reduced expectations of an immediate deal that would restore LNG flows through the Persian Gulf, exacerbating global supply tightness.

This is bad news for Europe, which relies heavily on imported gas, particularly from Norway's Ormen Lange field. The region's storage sites are already at their lowest seasonal levels since 2009, heightening concerns over winter supplies.