European natural gas prices climbed more than 4% on Monday to above €74/MWh, the highest level in over three and a half years, as escalating tensions between the US and Iran raised the risk of further disruptions to energy supplies from the Persian Gulf. Tehran announced it had targeted oil tankers and several vessels linked to the US and said it plans to establish a restricted maritime zone extending beyond the Strait of Hormuz in the coming days. This followed US strikes on Iranian oil tankers, which Washington described as retaliation for Iran’s missile attacks on US Navy warships.
The ongoing tit-for-tat confrontation is fueling concerns that shipments of Qatari LNG to Europe could face additional delays. The region is nearing the end of its summer gas storage injection season, with storage sites only about 62% full—below the five-year seasonal average. As a result, the risk of tighter competition for available supplies is increasing, leaving Europe more vulnerable to sharp price spikes during the colder months.
