Europe's gas inventories fall to 54% of capacity ahead of winter

European gas storage levels are only about 54 % full, the lowest point since 2021, and far short of the 90 % target needed before the November heating season. Qatar, which supplies roughly 17‑20 % of the EU's LNG, has invoked force‑majeure until mid‑September, cutting deliveries. At the same time, Iranian forces have struck tankers in the Strait of Hormuz, heightening fears of a prolonged disruption to the main LNG route.

The combined supply squeeze could force Europe to turn to higher‑priced U.S. LNG, while rising gas and oil prices are already pressuring inflation and prompting expectations of earlier ECB rate hikes. Ongoing conflict in the Middle East and the blockade of the Hormuz strait are expected to keep energy markets volatile throughout the winter season.