Amsterdam, March 09 (QNA) - European natural gas prices surged sharply by around 30 percent today, amid growing uncertainty in global energy markets and escalating military tensions in the Middle East, raising fears of prolonged supply disruptions.
The Dutch TTF natural gas contract, the main benchmark for European gas prices, surged to nearly 69.50 EUR per megawatt-hour before easing slightly later in trading.
The upsurge comes amid military tensions between the United States and Israel on one side and Iran on the other, which have disrupted shipping through the strategic Strait of Hormuz, a critical passage for a significant portion of global crude oil and LNG shipments, heightening concerns over sustained supply.
Despite the sharp increase in European gas prices, current levels remain below the record highs seen in 2022, during the energy crisis triggered by the war in Ukraine, when gas futures soared much higher due to supply shortages.
The surge in European gas prices signals additional pressures on global energy markets at a time when major economies are already grappling with inflation and high energy costs. Analysts warn that continued instability in the Middle East could increase competition for LNG, shift some demand to alternative markets, and make prices more volatile. (QNA)