The war on Iran is having a severe impact on gas prices in Europe

      Natural gas prices in Europe rose sharply by about 30 percent on Monday, as uncertainty in global energy markets escalated amid military tensions in the Middle East that have raised fears of long-term disruptions in supply chains.

The Dutch TTF natural gas futures index, which serves as the primary benchmark for gas prices in Europe, rose to levels close to 69.50 euros per megawatt-hour before retreating slightly later in the trading session.

This rise came amid military tensions in the Middle East, which have impacted shipping traffic through the vital Strait of Hormuz—through which a significant portion of oil and liquefied natural gas shipments to global markets pass—further fueling concerns about supply continuity.

Despite the sharp jump in gas prices in Europe, these prices remain below the record highs reached in 2022 during the energy crisis caused by the Russia-Ukraine war, when gas futures hit much higher levels due to supply shortages.

The rise in gas prices in Europe is a sign of additional pressure on global energy markets, at a time when major economies are facing challenges related to inflation and energy costs, amid expectations that continued instability in the Middle East will lead to increased competition for liquefied natural gas and a shift of some demand to alternative markets, making prices more volatile.