Iran War Sparks EU Gas Storage Crisis, Prices Soar to Multi-Month Highs
Europe's gas storage levels are at their lowest in nearly two decades as the war in Iran has disrupted liquefied natural gas (LNG) supply from Qatar, exacerbating a perfect storm of high demand and limited global LNG supply. The conflict has pushed European benchmark prices to multi-month highs and LNG prices to three-year highs.
Analysts warn that Europe may not be able to hit its target of having 75% of gas storage full by November 1, which could lead to forced buying and higher gas prices. Currently, Europe's gas storage is about 63% full, with the Netherlands becoming the first EU member state to warn it would miss its target.
The high gas prices have already started to feed through to consumer energy bills in Europe, with the UK set for a three-year high at the beginning of winter. The war in Iran has also led to increased competition from Asia for LNG supply, making it even harder for Europe to fill its storage sites.