Gas and oil prices are rising significantly
Natural gas prices in Europe have surged to their highest level in more than three years amid the Iran war, as the suspension of liquefied natural gas (LNG) deliveries from Qatar tightens already strained energy supplies.
On Tuesday, the price of natural gas on the Dutch TTF exchange (Titel Transfer Facility – Dutch gas trading platform used as a European benchmark) climbed to €62.64 per megawatt-hour. Just days earlier, on Friday, the price was still below €32, marking an extraordinary surge within a short period.
Since the beginning of the week, European gas prices have increased by more than 80 percent. Analysts say the sharp rise is largely driven by the halt in LNG shipments from Qatar, a key global supplier. As remaining LNG supplies become scarcer, prices are climbing rapidly across the market.
Jochen Stanzl warned that the current developments are reviving painful memories of the energy price crisis seen in 2022. He cautioned that the surge could reignite inflation fears at a time when economies are still recovering from the previous wave of price increases.
Market analysts also expect continued volatility. Ross Wyeno said energy traders are closely monitoring the impact of production disruptions and supply shortages. As countries assess their energy reserves and alternative supply options, gas prices could fluctuate significantly in the coming days.