Europe’s benchmark wholesale gas price, the front-month Dutch TTF contract, traded above €79 per megawatt-hour on Wednesday morning, its highest level since early 2023.
Prices have risen as fighting between the US and Iran has intensified concerns about LNG shipments through the Strait of Hormuz.
Before the conflict, the waterway carried about 20% of global LNG trade. Its effective closure has blocked those shipments for several months.
The continuous front-month TTF contract has traded between about €26.50 and €79/MWh since the beginning of the year, as the conflict added a growing risk premium to European gas prices.
It has also become less attractive for traders to put gas into storage. Summer gas is normally cheaper than winter gas, allowing companies to buy it, store it and sell it later.
