European natural gas prices rose on Wednesday as escalating tensions between the US and Iran heightened concerns over prolonged disruptions to liquefied natural gas (LNG) supplies through the Strait of Hormuz.
The benchmark front-month Dutch TTF gas contract was trading 2.3% higher at €73.88 per megawatt-hour at 10.16 a.m. (0716 GMT), after settling at €72.22 on Tuesday.
Gas prices climbed above €69 on Monday, reaching their highest level since January 2023.
Gas Infrastructure Europe data showed that gas storage facilities across European Union countries were 65.4% full.
The rise in prices came as LNG flows through the Strait of Hormuz were nearing a standstill, tightening supplies and prompting European buyers to compete more aggressively for alternative cargoes ahead of the winter heating season.
Cooling demand forecasts eased across both Europe and Asia this week, but low European storage levels and supply risks stemming from the Middle East outweighed the impact of milder demand expectations.
European buyers have been raising bids for US LNG volumes as they seek to secure alternative supplies.
– US LNG shipments to Asia double
US LNG exports have also continued to grow strongly, supported by new export capacity.
US LNG exports averaged 17.4 billion cubic feet per day (Bcf/d) in the first six months of 2026, up 23% from the same period last year, according to data from the US Energy Information Administration (EIA) released on Tuesday.
The EIA expects US LNG exports to average 17.3 Bcf/d in the second half of 2026 before rising to 18.7 Bcf/d in the first half of 2027.
The start of production at new LNG terminals and expansions at existing facilities helped drive US LNG exports at their fastest rate since the country began large-scale LNG exports in 2016.
Market disruptions caused by the closure of the Strait of Hormuz also affected LNG trade flows. US LNG shipments to Asia doubled in the first half of 2026 from a year earlier, while exports to both Europe and Asia increased in volume terms.
Europe’s gas storage levels remain below seasonal norms, raising concerns that a prolonged disruption to Middle Eastern supplies could leave the region exposed to sharper price volatility during the winter.
