European natural gas prices surge amid Iran‑US conflict and Hormuz closure

European natural gas futures rose by about 3% on Monday, with the Dutch TTF contract crossing the €50 per megawatt‑hour threshold for the first time this winter. The jump follows a renewed flare‑up between the United States and Iran, including missile and drone attacks centred on the Strait of Hormuz, and Qatar’s decision to halt its LNG‑carrier movements from Ras Laffan.

Analysts warn that the Strait handles roughly one‑fifth of global LNG trade, and the suspension of Qatari shipments could tighten supplies for Europe, which is still filling its gas inventories ahead of the next winter. Storage levels across the continent sit at about 47% of capacity, down from 56% a year earlier, raising concerns that higher prices will persist and that competition with Asian buyers may intensify.

The price spike underscores the vulnerability of European energy markets to geopolitical tensions in the Gulf, with potential ripple effects on households and industry throughout the region.