European gas climbs to fresh 2023 highs on US-Iran escalation
European natural gas rose to about €74.5/MWh after an intraday peak not seen since January 2023, as traders weighed US-Iran attacks. UK gas surged to as high as 184 pence/therm.
European natural gas prices climbed further to around €74.5 per megawatt hour on Wednesday, after touching their highest intraday level since January 2023, as traders assessed the latest US-Iran attacks.
Growing uncertainty over traffic through the Strait of Hormuz heightened supply concerns and weighed on sentiment.
UK gas prices also surged as high as 184 pence per therm, reaching a 43-month high.
The US said it had launched overnight airstrikes on targets in Iran, prompting retaliation from Tehran in the most serious escalation between the two countries in weeks.
Iran’s Islamic Revolutionary Guard Corps warned that the US strikes would further restrict traffic through the Strait of Hormuz, a key energy route through which roughly a fifth of global LNG typically passes.
Gas prices rose despite expectations of weaker demand, as strong wind power generation reduces the need for gas-fired electricity generation.