Euro Tumbles Amid Record Gas Prices and Pipeline Disruptions
European gas prices have reached a multi-year high of €84 per megawatt-hour on Monday, sending shockwaves through the market and hammering the euro.
The Dutch TTF wholesale benchmark price rose from €80/MWh to €84 as Houthi forces extended their grip on Red Sea ports and Iranian-backed militia struck the Saudi East-West pipeline, according to KBC. Regional officials estimate that repairs to the pipeline could take three to five weeks.
Natural gas prices are now 85% above their late-April level, notes Berenberg investment bank. The move is euro-specific as Europe buys most of its gas from abroad and pays for it in dollars.
The Eurozone economy's large manufacturing and industrial component also contributes to the euro's struggles against the pound.