Brussels, Belgium – Natural gas prices on European exchanges continued their rapid upward trend, hitting record highs not seen since late 2022. This surge was driven by escalating military tensions in the Middle East and their direct impact on global energy supply flows.
Details of the rise in the Dutch TTF index
In early trading, gas prices on the continent climbed to the $950-per-thousand-cubic-meters mark—the first time they have reached such a high level since December 23, 2022. According to trading data from the Dutch TTF index—Europe’s largest gas trading hub—October futures rose by 3.2% to hit $950. This followed an opening rise of 2.9% to $937.7, up from the previous session’s closing price of $911.5.
On a broader level, benchmark futures hit their highest levels since January 2023, posting gains of approximately 8% since last Friday. This notable rise coincided with oil prices breaching the $100-per-barrel mark, a surge driven by recent military developments in which the United States targeted Iranian oil tankers in retaliation for attacks on U.S. warships. The region also saw missile launches and the issuance of navigational warnings.
Supply Shortages and Concerns Over Winter Stocks in Europe
Bottlenecks in energy corridors play a key role in the current crisis; prior to the outbreak of the conflict, approximately 20% of Middle Eastern oil and liquefied natural gas (LNG) exports passed through the Strait of Hormuz. Although a minimum level of shipments continues—such as Qatar’s delivery of an LNG cargo to Pakistan this week—ongoing disruptions have caused a severe shortage in global supplies.
European nations are facing mounting pressure and significant challenges in replenishing their strategic gas reserves ahead of winter. Storage facilities are currently only 67% full—a level far below the five-year average of 84%. Traders are anxiously anticipating the risk of fierce competition for liquefied natural gas (LNG) shipments with buyers in Asia and other regions as winter approaches and consumption peaks.
