European gas prices surge to three-year high amid Middle East tensions

The average natural gas price in Europe has climbed to a three-year high, data from the London-based ICE Futures Exchange confirmed.

As of March 9, the calculated price according to the TTF index reached $675 per 1,000 cubic metres, the highest level since January 23, 2023, when prices nearly hit $745.

The surge comes amid rising tensions in the Middle East. Last week, QatarEnergy, the state-owned Qatari LNG producer, announced a suspension of liquefied natural gas production following attacks by Iranian drones. Most of this LNG is exported to European Union countries. In the days following the announcement, natural gas prices briefly exceeded $800 per 1,000 cubic metres.

Analysts warn that if the conflict continues, Europe could face a price shock comparable to the spring of 2022, when natural gas prices reached $3,892 per 1,000 cubic metres. The situation highlights Europe’s ongoing vulnerability to disruptions in global energy markets.

By Vafa Guliyeva