Middle East Conflict Sends European Gas Prices Soaring to 18-Month High

European gas prices have surged to their highest level since January 2023 due to renewed tensions in the Middle East. The front-month Dutch TTF gas contract has risen by 4.4% to €69.90 per megawatt-hour (MWh) as concerns grow over liquefied natural gas (LNG) exports from the Persian Gulf.

The region's conflict has raised fears of further disruptions to LNG supplies, which could tighten the global market and force European buyers to compete more aggressively with Asian buyers for available cargoes. This competition could put additional upward pressure on European gas prices.

EU gas storage facilities are currently 64.7% full, leaving inventories below historical levels for this time of year. Analysts warn that low storage levels and uncertainty over LNG supplies from the Gulf will keep the market volatile in the period ahead.