FX.co ★ European Gas Advances on Rising US-Iran Hostilities

European natural gas prices climbed to €75/MWh on Wednesday, their highest level since January 2023, as escalating hostilities between the US and Iran intensified concerns over a prolonged disruption of LNG supplies from the Persian Gulf. Iran launched retaliatory strikes on US military bases in Jordan, Kuwait and Bahrain after recent US attacks on Iranian targets near the Strait of Hormuz, which President Trump said were a response to Iranian mine-laying attempts in the waterway and an earlier attack on a US base in Jordan. The flare-up comes as LNG shipments through the strait have slowed to nearly a standstill, tightening supply and forcing European buyers to compete more aggressively for alternative cargoes ahead of the winter heating season. With European gas storage still below typical seasonal levels, a sustained disruption would leave the region more vulnerable to sharper price swings once colder weather sets in.