Gas Prices Continue to Rise in Europe Amid Middle East Tensions
The escalating tensions in the Middle East are casting a shadow over the European gas market, leading to a sustained rise in prices. The price of natural gas in Europe has surged once again, nearing its annual peak.
On Wednesday, the leading TTF futures contract for delivery in one month climbed by over 5% to 38.63 euros per megawatt hour (MWh) on the Amsterdam stock exchange. This narrowly missed the highest price of the year, which was recorded in March.
The recent surge in gas prices can be attributed to several factors. Investors are increasingly wary of potential disruptions to gas supplies from the Middle East, where tensions between Iran and Israel have escalated. Additionally, the ongoing conflict between Russia and Ukraine continues to cast a shadow over gas deliveries from the region.
While prices briefly dipped to around 22 euros per MWh in February, they have remained relatively stable in the range of 30 to 40 euros in recent months. The previous record high of over 300 euros per MWh was reached in 2022 following the invasion of Ukraine.