European natural gas futures climbed back above €50/MWh on Wednesday, leaving prices more than 60% higher since the start of March amid mounting concerns over supply shortages following the suspension of LNG shipments from the Persian Gulf. Escalating attacks by Iran on GCC countries and Israeli–US forces have intensified the conflict, undermining expectations of an imminent de-escalation.
The war has prompted QatarEnergy to halt operations at its liquefied natural gas facilities, which account for roughly 20% of global LNG supply. At the same time, LNG exports from the UAE remain suspended, as tankers avoid transiting the Strait of Hormuz. These disruptions have boosted competition for US LNG cargoes, which have become a crucial source of supply for Europe as the EU seeks to reduce its dependence on Russian gas.
In response, the EU is already examining measures to contain prices, including a possible price cap and additional state aid. Natural gas storage sites across the bloc were around 29.4% full, nearly 20 percentage points lower than at the same point a year earlier.
