FX.co ★ European Gas Prices Climb on Hormuz Shipping Risks

European natural gas prices climbed above €80/MWh, the highest level in more than three weeks, as ongoing attacks on tankers in the Strait of Hormuz intensified supply concerns. Iran has sharply increased strikes on commercial and energy vessels passing through the waterway, underscoring persistent maritime security risks and raising the threat of disruption to the broader recovery in fuel deliveries. Market anxiety was further stoked by reports that Washington has asked the Pentagon to prepare options for potential strikes on Iran ahead of the November midterm elections, amplifying fears of a wider escalation. Adding to the upward pressure on prices, forecasts indicate cooler weather across Northwestern Europe, which could lift heating demand as the region moves into winter. The weather-related support comes despite steady injections into European gas storage, now roughly 73% full. However, inventories remain below last year’s levels, leaving the region exposed to extended supply interruptions and abrupt surges in demand.