The de facto closure of the Strait of Hormuz, through which approximately 30% of global LNG (liquefied natural gas) supplies pass, led to a sharp rise in gas prices.
Europe primarily purchases liquefied natural gas from the USA, however, global competition for fuel may intensify, as Asian countries mainly import it precisely from the Middle East, writes Moscow Times.
The price of Dutch TTF gas futures in Europe rose on Monday morning to 40.8 euros, which is 27.5% higher than the closing price on Friday. By 12:00, the price had slightly decreased — to 39.2 euros/MWh ($484 per 1000 cubic meters), with the increase standing at 22.5%. This jump became the most significant since August 2023.
Over the weekend, following the start of bombardments by US and Israeli forces, which led to the death of Ayatollah Ali Khamenei and a number of military and political leaders of Iran, the latter announced the cessation of trade through the Strait of Hormuz until further notice, and then hit three tankers. Several tankers heading to Qatar and the UAE for LNG loading began to be delayed or change their route, notes Bloomberg.
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