European gas tops €76/MWh, extends rally on Middle East disruption fears

European natural gas prices rose above €76/MWh on Wednesday, extending gains for a fourth session to the highest level since December 2022. The move came as strikes and retaliation in the Middle East raised concern about additional supply disruptions. The US military said it destroyed five Iranian oil tankers near Kharg Island on Tuesday after attacks on its warships, while Tehran retaliated against US targets in Jordan. Iran-backed Houthi militants in Yemen also launched drones and missiles at energy facilities in southern Saudi Arabia, adding to challenges in restoring normal commercial traffic through the Strait of Hormuz.

The disruptions have forced Qatar to suspend shipments and extend force majeure on cargoes to Europe and Asia through autumn. Reduced LNG deliveries have slowed European storage injections, leaving inventories below the seasonal average as the winter heating season approaches.