European gas prices surge as Iran reverses Hormuz reopening decision

European natural gas prices surged sharply on April 20 after Iran reversed its decision to reopen the Strait of Hormuz.

At the Amsterdam gas hub, TTF futures for delivery next month rose by nearly 6% to €41.02 ($48.26) per megawatt-hour, according to foreign media.

The increase is linked to reports that Iran has cancelled previously announced plans to reopen the Strait of Hormuz and has intensified military activity in the region. Additional pressure on the market came from reports of US Navy operations in the area, including the seizure of an Iranian cargo vessel.

Markets had already reacted to earlier escalation: in March, gas prices rose to €74 per MWh, while before the conflict, they were around €31 per MWh.

By Jeyhun Aghazada