European natural gas prices surged again on Thursday, driven by the US-Israel conflict with Iran.
On the Dutch futures market, the European benchmark, gas for April delivery was trading over 9% higher at more than €53 per megawatt-hour by 8:25 a.m. This comes after prices had fallen below €50 on Wednesday, following a 70% increase in previous days.
The US and Israel’s military actions against Iran, along with Tehran’s retaliation, have disrupted shipping in the Strait of Hormuz. This vital waterway connects the Gulf of Oman to the Persian Gulf and serves as a key transit route for oil and gas.
Additionally, several Gulf states have scaled back their oil and gas production, further impacting energy markets.
The global oil prices have surged, too. Early trading saw Brent crude oil, the European benchmark, rise to $84.05 per barrel for May delivery, marking a 3% increase from Wednesday evening.
Since the war began last weekend, Brent crude prices have climbed approximately 16%, briefly reaching $85.12 per barrel on Tuesday, the highest level since July 2024.
