Israeli Air Strikes on Iran Spark Gas Price Surge in Europe

Gas prices in Europe continue to rise amid growing fears of an escalation of the war between Israel and Iran. On Monday, natural gas prices in Europe rose by 2.2% after jumping 4.8% on Friday. This happened against the backdrop of ongoing hostilities between Israel and Iran, which have been going on for the fourth day in a row, according to epravda.com.ua. Markets are reacting to the risk that further escalation of the conflict could disrupt energy supplies from the Persian Gulf. In particular, a significant portion of liquefied natural gas shipments pass through the Strait of Hormuz. Although supplies have not yet been interrupted, market participants fear potential disruptions at a critical time for stockpiling in Europe. Tensions escalated after Israel unexpectedly launched air strikes against Iranian military and nuclear facilities. Israel continues its air campaign, demonstrating its technical superiority, while Iran faces difficulties in responding. In addition to geopolitical risks, traders in Europe are also closely monitoring the situation in Norway, the region’s largest supplier of pipeline gas. Scheduled maintenance of several key facilities is continuing there. As of 8:21 a.m. in Amsterdam, Dutch futures for the coming month rose by 1.81% to €38.58 per megawatt hour. Stock markets in the Persian Gulf fell on Sunday morning after Israel and Iran exchanged new attacks on Saturday night, raising fears of an escalation of the conflict in the Middle East. On the night of 15 June, Iran launched another missile strike on Israel. Three people were killed in the attack, more than 200 were injured, and about 35 people are missing. On the night of 13 June, Israel launched a “pre-emptive strike” aimed at disrupting Iran’s nuclear program and military facilities. Shipping companies warn of risks to key Middle East sea routes following Israeli strikes on Iran.