European natural gas prices rose above €63 per MWh on Friday, their highest level since January 2023, as mounting tensions between the US and Iran renewed concerns over the security of Europe’s LNG supplies. The US has carried out strikes on Iran for 13 consecutive nights, while President Donald Trump warned Tehran and its Houthi allies in Yemen of “major military punishment” should further attacks on vessels in the Red Sea occur.
European gas prices have jumped more than 10% this week and over 45% since the start of July, as curtailed LNG flows from the Persian Gulf have intensified competition with Asian buyers for available cargoes. At the same time, unusually high temperatures across Europe have driven up electricity demand for cooling, bolstering gas consumption.
Equinor, Europe’s largest gas supplier, cautioned that the region is unlikely to meet its 80% storage target ahead of the heating season, leaving the market more vulnerable to price volatility.
