European gas benchmarks jump as Iran conflict disrupts 7-11% of regional LNG imports, raising winter shortage fears.
European natural gas prices surged to four-month highs after Iran-related conflict closed key shipping straits, disrupting LNG supplies. The Strait of Hormuz and Bab el-Mandeb closures threaten nearly 90% of Asia’s LNG shipments from Qatar and the UAE, while Europe imports 7-11% of its LNG from the region.
Prices spiked amid concerns over winter shortages, with the Dutch benchmark reflecting heightened market anxiety. Prior to the disruptions, European gas inventories had stabilized after last year’s energy crisis, but supply risks now outweigh demand forecasts.
Traders shifted focus to alternative fuels like coal and oil as LNG cargo diversions tightened global supply.