FX.co ★ European Gas Hovers Near Multi-Year Highs

European natural gas prices held steady around €79/MWh on Thursday, hovering near their highest level in more than three years, as concerns mounted over the region’s gas supply outlook. Storage levels across Europe remain below historical averages, while escalating tensions in the Middle East continue to disrupt LNG shipments through the Strait of Hormuz—a vital chokepoint for roughly 20% of global gas flows, predominantly from Qatar.

In the latest flashpoint, Iran reported it had attacked 10 ships near the strait and warned it would intensify strikes if the United States continued attacks on Iranian territory, stoking fears of deeper and more prolonged supply disruptions. At the same time, planned maintenance in Norway and reduced Algerian deliveries to Italy are further constraining pipeline flows into Europe.

These mounting supply risks are emerging just as Europe approaches the end of its summer storage injection season, raising the prospect of fiercer competition for global gas supplies heading into the winter months.