European Natural Gas Prices Rebound Amid Iran War Uncertainty
European natural gas prices rebounded on Wednesday, recovering from a one-month low, as renewed uncertainty surrounding the Iran conflict impacted energy markets.
This story was prepared with the help of artificial intelligence, compiled from several sources, and read and approved by our editor.
European benchmark natural gas prices saw a rebound on Wednesday. According to OilPrice.com, the front-month price at the Dutch Title Transfer Facility (TTF), Europe's gas trading benchmark, increased by 2.7% by 9:30 a.m. in Amsterdam on Wednesday, surpassing $96.85 (87 euros) per megawatt-hour (MWh). This marked a recovery from the one-month low of $91.30 (82 euros) per MWh recorded earlier in the week.
The surge is attributed to the return of uncertainty regarding the Iran conflict to energy markets. Earlier in the week, prices had slumped following signals from U.S. President Donald Trump suggesting he was not planning another attack "at this point." However, OilPrice.com reported that on Wednesday, as ongoing tanker attacks in the Strait of Hormuz diminished optimism for a peace deal between the U.S. and Iran, both oil and European gas prices rose.
Europe faces a vulnerable gas supply situation ahead of winter, a point also highlighted by Bloomberg, which noted Europe's low gas storage and surging prices. OilPrice.com further detailed that LNG flows from the Strait of Hormuz remain below pre-war levels, and QatarEnergy has extended a force majeure on deliveries until at least the end of December 2026.
Data from Gas Infrastructure Europe indicated that EU storage sites were 72% full as of November 10. This level is below the five-year average for this period at the start of the heating season, and withdrawals have begun in most EU countries as temperatures drop. The International Energy Agency (IEA) warned in a recent report that the global gas market could remain tight well into next year, as Europe enters the heating season with its lowest gas storage levels in over a decade.