FX.co ★ EU Natural Gas Extends Surge

European natural gas futures jumped 27% to €55/MWh, extending the 35% surge from the previous session, as escalating tensions in the Middle East raised fears of disruptions to Europe’s LNG supplies. On Monday, QatarEnergy suspended LNG production after Iranian drones struck the Ras Laffan and Mesaieed facilities, which together account for roughly one-fifth of global LNG output. The outage could affect around 15% of Europe’s LNG imports, tightening global supply and intensifying competition for alternative cargoes. Heightening the pressure, Iran has also moved to block traffic through the Strait of Hormuz, further constraining exports from other key Middle Eastern producers. These supply risks are emerging at a time when EU gas storage is relatively low at 31%, down from 40% at the same point last year.