European gas prices surge to over 1‑month high on Hormuz closure
European wholesale natural gas prices jumped on Monday, reaching their highest level in more than a month as escalating Middle‑East hostilities and Iran’s announcement that the strategic Strait of Hormuz was closed “until further notice” revived acute concerns over global liquefied natural gas (LNG) supplies. The benchmark Dutch front‑month contract increased 3.5% to €50.37 per megawatt‑hour in early trading, while the comparable British contract rose roughly 4%, mirroring the continental price move.
Iran’s declaration follows fresh exchanges of military strikes between U.S. forces and Tehran. Although the U.S. Central Command maintains that the shipping lane remains open for commercial traffic, the mere threat of a prolonged blockade sent a shockwave through energy desks because the Strait of Hormuz handles about one‑fifth of worldwide LNG trade, including the bulk of Qatar’s exports.
Europe’s gas storage facilities are being filled for the 2026/27 winter heating season but are only at about 47% of capacity, compared with 56% at the same point last year. The lower inventory level, combined with the risk of curtailed Gulf LNG exports, could quickly intensify competition with Asian buyers and push prices higher.
Analysts caution that market volatility is likely to remain intense as diplomatic avenues appear obscured by the renewed military exchanges.