Hormuz Standoff Sends Europe's Gas Prices Soaring Again

Europe's natural gas prices surged by 4% at trade open in Amsterdam on Thursday due to ongoing tensions surrounding the Strait of Hormuz. The continued standoff between the US and Iran has resulted in blocked LNG shipments, exacerbating concerns over global supply.

The front-month price at the Dutch Title Transfer Facility (TTF), Europe's benchmark for gas trading, initially jumped 4% but later eased to a 3% increase by mid-morning. As of Thursday morning, prices stood at $84.30 per megawatt-hour (MWh).

The recent peak price of $93 per MWh was the highest since January 2023, when Europe faced its first winter without Russian pipeline gas supply. The current situation has sparked fears that LNG storage sites may not be fully filled ahead of winter.