European natural gas prices rose to €48.7 per MWh on Wednesday, extending strong gains from the previous session as renewed tensions in the Middle East heightened concerns over fresh supply disruptions. The US military launched a new round of strikes against Iran and revoked a license that had allowed the country to sell oil, in retaliation for attacks on three merchant vessels in the Strait of Hormuz. These latest strikes have cast doubt on the fragile diplomatic understanding between Washington and Tehran that had helped reopen the crucial shipping corridor last month.
Prices also found support from forecasts of an intense heatwave across parts of Northwest Europe, which is expected to lift electricity demand for air conditioning and, in turn, increase gas-fired power generation. This demand uptick comes as gas injections into European storage sites proceed at a slower-than-usual seasonal pace. At the same time, gas flows from Norway—now Europe’s largest single pipeline supplier—declined due to unexpected maintenance work.
