Gas prices in Europe soared by almost 50% due to the war in Iran
Wholesale gas prices in Europe have surged amid the escalation of conflict between Iran and the US with Israel. For the second consecutive day, quotes in the Netherlands and the UK show strong growth: on Tuesday, they jumped by more than 40%, writes The Moscow Times.
Illustrative image. Photo: freepik.com
The situation worsened after Qatar temporarily halted liquefied natural gas production at the Ras Laffan plant — the world's largest LNG export terminal. Additionally, the conflict effectively led to the closure of the Strait of Hormuz, through which about a fifth of global LNG supplies pass. This triggered a sharp increase in prices on international markets.
Gas futures at the Dutch TTF hub rose by almost 50% to reach 64.5 euros per megawatt-hour. In the UK, contracts for next-month delivery increased by more than 40% — to 159 pence per therm.
Analysts note that the crisis coincided with an important period for the market: the heating season is ending in Europe and Asia, and gas reserves, especially in Europe, remain low. This could complicate the replenishment of storage facilities in the coming months.
Experts believe that the US could partially increase LNG exports, but in the short term, this is unlikely to fully compensate for potential supply losses from Qatar. According to analysts' forecasts, prices at the Dutch hub could remain above 40 euros per megawatt-hour until the second quarter, after which a decline is possible if geopolitical tensions ease.
The price increase also affected the European LNG market: the indicative price for supplies to northwestern Europe for early March rose by more than 56% compared to the previous day.
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