Hormuz Crisis Traps Europe in Gas Price Spiral
Europe's natural gas prices have skyrocketed since the war in Iran trapped a fifth of the world's liquefied natural gas supply behind the Strait of Hormuz.
The high prices are causing headaches for governments as energy bills for households and industry costs rise.
The European Central Bank (ECB) has raised key interest rates twice since June, with potential for further increases, as the surge in natural gas, gasoline, and diesel prices fuels inflation.
Qatari LNG cargoes are unable to move through the Strait of Hormuz as easily as oil shipments due to ship-to-ship transfers being trickier for gas.
As a result, European gas storage levels are at a historical low, with EU sites only 71% full as of September 28, compared to 86% for this time of year in the past five years.