European gas prices jump 5% to highest since January 2023

August 31, 2026 at 09:30 PM2 min

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European benchmark natural gas prices jumped 5% in early Monday trading to top 70 euros per megawatt-hour, the highest since January 2023. The rise followed renewed U.S.-Iran hostilities and Qatar's extension of force majeure on LNG deliveries through October. Oil prices also climbed 3.6% amid concerns over Strait of Hormuz supply disruptions.

Key Facts

The Dutch TTF benchmark gas price topped 70 euros ($81.20) per megawatt-hour on Monday, the highest since January 2023.
Oil prices rose 3.6% in European morning trading amid concerns over Strait of Hormuz supply.
Qatar extended force majeure on LNG deliveries by one month through October, announced last week.
LNG traffic at the Strait of Hormuz remains at a standstill, while oil flows have rebounded in recent weeks.

Price Surge

European benchmark natural gas prices jumped 5% in early morning trade on Monday as U.S.-Iran hostilities intensified concerns about LNG supply from the Middle East. The Dutch Title Transfer Facility (TTF) price topped 70 euros, or $81.20, per megawatt-hour in Amsterdam trading. This was the highest front-month benchmark futures price since January 2023, more than three and a half years ago.

Supply Disruptions

The renewed hostilities and the still blocked Strait of Hormuz for LNG traffic are tightening global gas markets. Asia and Europe are competing for a shrinking pool of supply to fill storage ahead of the coming winter. Europe is heading for winter with one of the lowest levels of gas in storage in the past two decades. The war in the Middle East crippled LNG supply from Qatar and sent gas and LNG prices in Europe and Asia skyrocketing.

Hormuz Bottleneck

LNG traffic at the Strait of Hormuz remains at a standstill, even though oil flows are estimated to have rebounded in recent weeks. Unlike crude oil, LNG cannot be shuttle-shipped through Hormuz and then reloaded via ship-to-ship transfer. Persian Gulf producers, including Qatar, have been using ship-to-ship transfers in recent months to ship oil to customers.