FX.co ★ TTF Prices Rise as Middle East Crisis Worsens

European natural gas futures have surged to over €41 per megawatt-hour, approaching their highest point since early April. This increase is driven by escalating concerns that the Iranian-Israeli conflict might disrupt supply chains. Traders anxiously await Iran's response following the United States' recent strikes on Iranian nuclear facilities. With approximately 20% of the world's LNG navigating the crucial strait, fears intensify over potential Iranian attacks on tankers in the area. Iran’s Foreign Minister, Abbas Araghchi, has not ruled out any options, while Tehran has vowed there will be enduring consequences for the US strikes. Concurrently, Israel continues its offensive with strikes on military targets within Iran. Compounding these geopolitical tensions, Europe is grappling with abnormally high temperatures, which are increasing the demand for natural gas due to elevated air conditioning use. Weather forecasts predict these above-average temperatures will persist, further inflating gas prices.