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Gas prices climb as Israel-Iran conflict stokes fears over LNG supply disruption

European natural gas prices ticked higher on Monday, driven by escalating fears over the Israel-Iran conflict and its potential fallout on global energy routes, especially through the critical Strait of Hormuz.

TAS News Service

info@thearabianstories.com

Monday, June 16, 2025

Amsterdam: European benchmark futures rose by 2.2% at the opening of the week, building on Friday’s 4.8% surge. Dutch futures for next-month delivery — a key regional benchmark — edged up 1.81% to €38.85 per megawatt-hour, reflecting heightened anxiety in the markets.

The ongoing conflict between Israel and Iran, now in its fourth day with no ceasefire in sight, has stirred concerns over a possible escalation that could disrupt the flow of liquefied natural gas (LNG) shipments through the Strait of Hormuz — a vital artery for global energy trade. While LNG supplies remain unaffected for now, any interruption could severely strain Europe’s gas inventories just as the continent prepares for its next winter season.

Adding to the unease, traders are closely watching Norway, Europe’s largest pipeline gas supplier, where routine seasonal maintenance at key facilities could lead to temporary reductions in export volumes.

Meanwhile, rising temperatures across much of Europe are pushing up energy demand, particularly for cooling, further fueling upward pressure on prices.

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