FX.co ★ European Gas Climbs to 2023 High on Supply Fears

European natural gas prices extended their gains on Wednesday, rising to about €74.5 per megawatt hour after hitting their highest intraday level since January 2023, as traders reacted to the latest US–Iran military exchanges. Mounting uncertainty over traffic through the Strait of Hormuz intensified supply concerns and dampened risk appetite.

UK gas prices also jumped, reaching 184 pence per therm at one point, a 43‑month high. The United States confirmed it had carried out overnight airstrikes on targets in Iran, triggering retaliatory action from Tehran in the most serious flare‑up between the two countries in weeks.

Iran’s Islamic Revolutionary Guard Corps warned that the US strikes would further restrict traffic through the Strait of Hormuz, a crucial energy chokepoint through which roughly one‑fifth of global LNG volumes typically transit.

Gas prices advanced despite expectations of softer demand, as robust wind power generation continues to curb the need for gas‑fired power generation.