European Gas Prices Rise as Middle East Conflict Escalates

Natural gas prices continued to rise in early European trading today, amid concerns about the potential expansion of the war between Israel and Iran and its impact on global energy markets.

Bloomberg News reported that European benchmark futures prices rose 2.2% today, following a 4.8% rise on Friday at the close of last week’s trading.

The open war between Israel and Iran entered its fourth day with no signs of a quick resolution, fueling fears of an escalation in the oil and gas-rich Middle East.

The fear of disruption to the movement of liquefied natural gas (LNG) tankers through the Strait of Hormuz as a result of the Israeli-Iranian conflict is the biggest concern among gas market participants.

Although LNG supplies from the region have not been affected so far, any disruption would lead to supply shortages at a critical time for Europe’s gas storage season ahead of next winter.