Strait of Hormuz attacks drive up oil prices and threaten European gas supplies

Oil prices are rising due to ongoing Iranian attacks on ships in the Strait of Hormuz. Despite the increased maritime insecurity, the United States has not yet provided a direct military response. U.S. President Donald Trump has stated there are no plans for talks with Iran, though he has suggested potential American action in the region.

Simultaneously, energy analysts at Montel warn that Europe faces a significant shortage of liquefied natural gas (LNG) ahead of winter. The conflict in the region is bottlenecking shipments through the Strait of Hormuz, causing some gas cargoes from the U.S. to be redirected toward Asia.

Montel reports that Europe has received an average of only 105 LNG shipments per month this summer, falling short of the 130 shipments required monthly to reach an 80 percent storage target by November 1. This deficit of approximately 72 shipments could lead to structurally higher energy prices and increased pressure on European gas markets.