European natural gas prices rose to €55.70 per MWh on Friday, the highest level in nearly four months, as escalating US–Iran hostilities heightened risks to Persian Gulf energy supplies. On Thursday, the United States launched another round of strikes on Iran, following earlier attacks that hit an unladen oil tanker bound for Iranian ports after a blockade was reimposed. Tehran has responded with attacks on US military bases in neighboring countries and has reportedly urged Yemen’s Houthi rebels to close the Red Sea export route if Washington targets Iran’s power infrastructure.
EU gas prices have jumped more than 14% this week and over 27% so far in July, reversing an earlier decline of more than 14% in the second quarter, as the renewed conflict complicates Europe’s efforts to rebuild gas inventories ahead of winter. Supply concerns deepened further after Qatar, the Middle East’s largest LNG exporter, suspended plans to expand production following an attack on one of its tankers near the Strait of Hormuz.
