Strait of Hormuz Disruption Sends European Gas Prices Soaring

European gas inventories have hit record low levels due to disruptions in liquefied natural gas (LNG) supplies from Qatar caused by the blockade of the Strait of Hormuz triggered by the U.S.-Israeli war against Iran.

The Strait of Hormuz disruption has removed roughly 20% of global LNG supply normally sourced from Qatar, forcing Asian buyers to seek alternative supplies as well.

As a result, winter procurement costs are expected to surge, with benchmark Dutch TTF front-month prices potentially reaching €60-80 per megawatt-hour, or even €110 if the disruption persists and winter is colder than average.