EU Gas Prices Rise as Middle East Tensions Rattle Energy Market
European (EU) natural gas prices surged more than 20% at the start of the week as escalating tensions in the Middle East rattled energy markets and raised fears of supply disruptions.
Joint US and Israeli strikes on Iran, followed by Tehran’s retaliation, have sharply curtailed tanker traffic through the Strait of Hormuz, a vital corridor for global oil and liquefied natural gas (LNG) shipments.
At the Dutch Title Transfer Facility (TTF), Europe’s benchmark gas hub, the April contract was trading at €39.20 per megawatt-hour, up from €31.95 on Feb. 27 before the strikes.
The move pushed prices to their highest level since Feb. 18, 2025, when they reached €38.70 per megawatt-hour, and marked the sharpest percentage jump since August 2023.
The Strait of Hormuz, which links energy producers in the Persian Gulf to global markets via the Arabian Sea, handles roughly 20% of global oil and LNG trade. Nearly all of Qatar’s LNG exports transit the narrow waterway, making it a critical route for international supply.
Although much of the LNG passing through the strait heads to Asia, particularly China, the risk of prolonged disruption is lifting prices worldwide, especially in Europe, which relies heavily on imported LNG.
Lower storage levels are adding to the pressure. European gas inventories have fallen below 30%, increasing the urgency for buyers to secure additional cargoes if supply risks intensify.
South Pars Gas Field, one of the world’s largest natural gas basins, is estimated to hold about one-third of global gas reserves. The offshore field, shared between Iran and Qatar, is known as the North Dome on the Qatari side.
Most of the gas produced at the Iranian portion of South Pars is consumed domestically due to sanctions and technical constraints.
According to the Gas Exporting Countries Forum, Iran’s natural gas production was about 276 billion cubic meters in 2024, with roughly 94% consumed domestically.
Iran’s South Pars field is estimated to contain about 500 trillion cubic feet of natural gas, of which around 360 trillion cubic feet is considered technically and economically recoverable. OMO Bill Yield Increases as Investors Trim Holdings
