European Gas Prices Climb on Hormuz Shipping Risks
European natural gas prices rose to around €80/MWh, the highest level in more than three weeks, as continued tanker attacks in the Strait of Hormuz fueled concerns over supply disruptions. Iran has sharply increased attacks on commercial and energy vessels transiting the waterway, highlighting persistent shipping risks and threatening to disrupt the broader recovery in fuel deliveries. Reports that Washington has asked the Pentagon to prepare options for potential strikes on Iran ahead of the November midterm elections further heightened fears of an escalation in the conflict. Further supporting prices, forecasts point to cooler weather across Northwestern Europe, which could boost heating demand as the region heads into winter. This weather-driven support comes amid steady additions to European storage reserves, with inventories now around 73% full. Still, storage levels remain below last year's, leaving the region vulnerable to prolonged supply disruptions and sudden demand spikes.
European natural gas prices rose to around €80/MWh, the highest level in more than three weeks, as continued tanker attacks in the Strait of Hormuz fueled concerns over supply disruptions. Iran has sharply increased attacks on commercial and energy vessels transiting the waterway, highlighting persistent shipping risks and threatening to disrupt the broader recovery in fuel deliveries. Reports that Washington has asked the Pentagon to prepare options for potential strikes on Iran ahead of the November midterm elections further heightened fears of an escalation in the conflict.
Further supporting prices, forecasts point to cooler weather across Northwestern Europe, which could boost heating demand as the region heads into winter. This weather-driven support comes amid steady additions to European storage reserves, with inventories now around 73% full. Still, storage levels remain below last year's, leaving the region vulnerable to prolonged supply disruptions and sudden demand spikes.