BRUSSELS — European natural gas prices shot to a four-month high as renewed violence around the Strait of Hormuz triggered concerns about the feasibility of transporting energy through the world’s most vital energy choke point.
The benchmark European natural gas price — known as the Dutch TTF — briefly crossed €60 per megawatt-hour Monday, the highest level since mid-March, and settled at €59 per megawatt-hour Tuesday after the United States launched a tenth consecutive night of strikes against Iran. Tehran responded by targeting U.S. allies in the region and tankers in the Persian Gulf.
Before a ceasefire was struck in June, gas prices had consistently stayed below €50 per megawatt-hour, with traders wary of placing big bets during a war that had become impossible to predict.
Tuesday’s prices represent a 50 percent increase from the previous month. They also reflect concern that gas supplies will be further squeezed by the combination of depleted European reserves and high summer temperatures in Asia, which analysts expect will drive up demand for air conditioning.
