European natural gas prices climbed back above €62 on Friday, returning to a four-month high, as concerns over the continent’s LNG supply security deepened amid persistent tensions in the Middle East. The US carried out its 13th consecutive night of strikes on Iran, while President Donald Trump warned Tehran and its Houthi allies in Yemen of “major military punishment” if further attacks are launched on vessels in the Red Sea.
European gas prices are up 8% so far this week and have surged more than 42% in July, as reduced LNG flows from the Persian Gulf have intensified competition with Asian buyers. At the same time, hot weather across Europe has driven up electricity demand for cooling. Together, these factors are complicating efforts to rebuild gas inventories ahead of winter. Equinor, Europe’s largest gas supplier, has warned that the bloc is unlikely to reach its 80% storage target before the heating season, leaving the market more exposed to sharp price swings once colder weather sets in.
