European wholesale natural gas prices climbed sharply on Monday, reaching their highest levels since late March as renewed geopolitical tensions in the Middle East heightened concerns over potential disruptions to global liquefied natural gas (LNG) supplies.
The Dutch front-month gas contract, Europe’s benchmark, rose 3.45% during mid-morning trading, while the equivalent UK wholesale gas contract advanced 3.52%, reflecting growing anxiety across regional energy markets.
The latest rally followed reports that a commercial tanker caught fire after an attack in the Strait of Hormuz, one of the world’s most strategically important shipping routes for energy exports.
Around one-fifth of global LNG shipments pass through the Strait of Hormuz, with cargoes primarily originating from major Gulf producers. Any threat to the passage is closely monitored by European energy markets, given the region’s increasing dependence on imported LNG.
Following the sharp reduction in Russian pipeline gas supplies in recent years, Europe has become significantly more reliant on seaborne LNG to meet residential heating demand and support industrial activity.
The renewed maritime tensions also coincided with a 2.2% rise in global crude oil prices, adding further upward pressure to oil-linked gas contracts.
Although LNG cargoes continue to transit the Strait of Hormuz under heightened security measures, traders said the market is increasingly pricing in geopolitical risk. Reports of active security incidents have driven insurance costs sharply higher, with elevated war-risk premiums feeding directly into European gas prices.
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