European natural gas jumps above €74/MWh as US-Iran tensions escalate

European natural gas prices rose more than 4% to above €74/MWh on Monday, reaching their highest level in more than three and a half years as US-Iran tensions escalated and raised concern over possible disruption to energy supplies from the Persian Gulf. Iran said it targeted oil tankers and several US-linked vessels and plans to set up a restricted maritime zone beyond the Strait of Hormuz in the coming days. The move followed US strikes on Iranian oil tankers, which Washington said were in retaliation for Tehran’s missile attacks on US Navy warships. The tit-for-tat escalation has increased concern that Qatari LNG shipments to Europe could be delayed further.

Europe is nearing the end of its summer storage injection period, with gas storage facilities about 62% full, below the five-year seasonal average, leaving the region more exposed to price spikes in the colder months.