FX.co ★ TTF Prices Rise to Over 10-Week High

European natural gas futures have surged to over €38/MWh, marking their highest level in more than ten weeks. This spike is attributed to mounting tensions between Israel and Iran, which have sparked concerns over a wider conflict potentially affecting energy supplies from the Middle East. Of particular concern is the potential risk to the Strait of Hormuz, a key shipping lane through which nearly 20% of the world's LNG trade passes. Although Qatari LNG constitutes less than 4% of Europe's supply, any blockade could lead to global supply chain disruptions. Since much of Russian pipeline gas has been lost, European LNG demand has increased, making consistent supply crucial before the winter restocking period. Meanwhile, market participants are closely monitoring potential supply challenges in Norway, Europe's largest supplier of pipeline gas. Furthermore, above-average temperatures across Europe are driving up the demand for cooling energy, with forecasts indicating continued high temperatures and maximum air conditioning use in the coming weeks.