Middle East conflict pushes European gas prices to highest since 2023

Gas prices in Europe surged above $800 per 1,000 cubic metres as March 9 trading opened, marking the first time since January 2023 that prices reached this level, Bloomberg reports.

According to data from London’s ICE, the rise comes amid climbing oil futures and escalating tensions in the Middle East.

April futures contracts at the TTF hub in the Netherlands jumped to around $820 per 1,000 cubic metres, equivalent to 68.635 euros per megawatt-hour, based on current exchange rates.

The increase represents a gain of more than 27% since the start of the trading day.

Prices have surged following attacks on Iran by the United States and Israel on February 28. In retaliation, Tehran targeted US military installations in the Persian Gulf. The conflict has now entered its tenth consecutive day with no indication of abating, injecting “additional uncertainty” into global energy markets, the agency reported.

Europe is particularly exposed, as its liquefied natural gas (LNG) reserves have been depleted over the winter. This leaves the continent facing the prospect of securing larger LNG supplies in the summer, “competing with Asian buyers for a limited volume of shipments.”

By Vafa Guliyeva