Middle East Tensions Send European Gas Prices Soaring to Two-Year High

European gas prices have hit their highest level since January 2023 due to renewed tension in the Middle East, which has raised concerns over further disruptions to liquefied natural gas (LNG) exports from the Persian Gulf.

The front-month Dutch TTF gas contract was trading at €69.90 per megawatt-hour (MWh) on Monday, up 4.4% from Friday's close of €66.97.

EU gas storage facilities were only 64.7% full, below historical levels for this time of year and raising concerns over efforts to refill storage ahead of the winter heating season.

Milder weather forecasts for early September may curb near-term demand, but low storage levels and uncertainty over LNG supplies from the Gulf are putting upward pressure on prices.