Due to Trump’s ultimatum to Iran: gas prices in Europe have jumped by 5%
23 March 12:28
Natural gas prices in Europe have resumed their upward trend following another exchange of threats between the U.S. and Iran.
Bloomberg reported this, according to [Komersant].
At the start of trading, benchmark contracts rose by more than 5%, completely offsetting the previous session’s decline.
Traders are concerned about Donald Trump’s ultimatum, which gave Tehran two days to open the Strait of Hormuz under threat of strikes on Iranian power plants. In response, the Iranian side declared its readiness to attack key energy infrastructure throughout the Middle East.
Military operations, now in their fourth week, have effectively halted shipping through the Strait of Hormuz. This has blocked nearly 20% of global liquefied natural gas (LNG) flows.
The situation is further complicated by damage to facilities at Qatar’s largest LNG plant, where approximately 17% of the infrastructure has been put out of commission. According to official statements from the Qatari side, restoring production volumes to pre-war levels could take up to five years.
Analysts’ Forecasts
Analysts at Goldman Sachs Group Inc. note that gas prices in Europe and Asia will be forced to continue rising due to prolonged supply disruptions.
Large-scale attacks on the Middle East’s energy infrastructure last week forced experts to raise their forecasts.
According to experts, the energy shortage will last much longer than previously expected, putting additional pressure on global markets.
Gas Stockpiling in Europe
Amid the instability, European governments are focused on replenishing depleted gas reserves. EU Energy Commissioner Dan Jørgensen urged member states to begin filling storage facilities as soon as possible to avoid peak competition for the resource this summer.
It is proposed to lower the filling targets to 80% and make maximum use of the flexibility of current EU legislation.
As of Monday morning in Amsterdam, Dutch gas futures rose to 62.02 euros per megawatt-hour.
