gas prices

The European Commission is calling on member states to refill gas reserves earlier than usual due to risks linked to the conflict in the Middle East. Although the EU is better prepared than during the 2022 energy crisis, officials say early action could stabilise prices and reduce pressure later in the year. The warning highlights Europe’s continued reliance on gas routes through the Strait of Hormuz.

European gas prices jumped by more than 9% on Thursday morning, reaching €53.26 per megawatt-hour on the Amsterdam exchange as the conflict between the United States, Israel, and Iran entered its sixth day. Although a US-led plan to protect shipping briefly steadied markets on Wednesday, the continued closure of the Strait of Hormuz has fueled fears of a long-term energy shortage. This latest price spike was triggered by Iranian claims of an attack on an American tanker in the Persian Gulf, leaving traders increasingly worried about the security of vital global fuel supplies.

European energy suppliers Vattenfall and Eneco have reduced access to fixed-term contracts following a surge in gas prices due to the conflict in the Middle East. Both companies say the market is too volatile to offer the usual range of deals. The number of available contracts is limited, and new prices are already higher.