European Natural Gas Prices Rise Nearly 4% as Middle East Tensions Fuel LNG Supply Concerns

European natural gas prices rose nearly 4% to around €50.7 per megawatt-hour (MWh) on Monday, recovering losses from the previous trading session as renewed military exchanges between the United States and Iran increased concerns over liquefied natural gas (LNG) shipments through the Strait of Hormuz.

The gains followed another escalation in regional tensions after the U.S. Central Command said American forces had carried out a new wave of strikes targeting dozens of locations across Iran. According to the military, the operation was intended to reduce Tehran’s ability to threaten maritime traffic through the strategic waterway.

Iran responded with attacks targeting countries hosting U.S. military forces in the region, including Kuwait, Bahrain and Jordan, further heightening geopolitical risks across the Gulf.

Uncertainty over the status of the Strait of Hormuz added to market volatility. U.S. authorities said the shipping route remained open to commercial navigation, while Iranian officials stated that the passage had been closed “until further notice.”

The Strait of Hormuz is one of the world’s most critical energy corridors, handling a significant share of global oil exports as well as LNG shipments from major producers in the Gulf.

Market attention remains focused on the potential impact of any prolonged disruption to LNG exports, particularly as European countries continue efforts to rebuild natural gas inventories ahead of the winter heating season. Any interruption to cargo flows or damage to export infrastructure could tighten global LNG supplies and increase competition for available shipments.

The latest price increase underscores the sensitivity of European energy markets to geopolitical developments in the Middle East, where any disruption to shipping routes or production infrastructure can quickly influence supply expectations and commodity prices.