12.03.202607:40:29UTC+00EU Natural Gas Extends Advance

European natural gas futures rose further toward €52/MWh on Thursday as the war in the Middle East continued to disrupt LNG flows to Europe. On Wednesday, suspected Iranian drones struck three vessels in and near the Strait of Hormuz, deepening fears of prolonged supply interruptions. In response to the escalating conflict, QatarEnergy has suspended operations at its LNG facilities, which account for roughly 20% of global supply. LNG exports from the UAE have also remained largely halted, as tankers continue to avoid the Strait due to security risks.

These disruptions have intensified competition for US LNG, now a crucial source of gas for Europe following its move to reduce dependence on Russian supplies. In an effort to contain the rally in prices, the EU has begun considering intervention measures, including a potential price cap. Gas storage levels across the bloc are currently below 30%, nearly 20 percentage points lower than a year ago, underscoring Europe’s vulnerability to further supply shocks. Prices have already jumped more than 60% so far this month.