European gas prices rise to €75/MWh as US-Iran tensions escalate

European natural gas prices rose further to €75/MWh on Wednesday, the highest level since January 2023, as rising hostilities between the US and Iran heightened fears of a prolonged disruption to LNG supplies from the Persian Gulf.

Iran struck back at US military bases in Jordan, Kuwait and Bahrain following the latest US attacks on Iranian targets near the Strait of Hormuz, which President Trump said were in response to Iranian mine-laying attempts in the waterway and an earlier attack on a US base in Jordan.

The escalation comes as LNG flows through the strait were almost at a standstill, tightening supplies and forcing European buyers to compete more aggressively for alternative cargoes as they prepare for the winter heating season.

With European gas storage levels still below their usual seasonal levels, an extended disruption would leave the region more exposed to sharper price volatility once colder weather arrives.