European Gas Prices Jump 30% as Hormuz Disruption Threatens Winter Supply
Updated
Updated · Financial Times · Jul 16
European Gas Prices Jump 30% as Hormuz Disruption Threatens Winter Supply
3 articles · Updated · Financial Times · Jul 16
Summary
European gas prices have climbed nearly 30% in the past month to their highest since March, as renewed US-Iran clashes keep the Strait of Hormuz partly closed and unsettle LNG markets.
More than half of the wartime loss of 20% of global LNG supply was cushioned by new projects—mainly in the US—while weaker Asian demand and Europe’s delayed stockpiling helped absorb the shock.
European storage is only a little above 50% full versus a more typical 60% for this time of year, leaving less buffer if tanker traffic stays slow or supply recovery stalls.
A cold winter alone could add about 20 billion cubic metres to European gas demand, raising the risk that Europe and Asia compete for LNG cargoes and push prices and power bills higher.
Higher gas and electricity costs would hit European households and industry, while US competitors would retain an advantage from cheaper domestic gas.
With the Strait of Hormuz paralyzed, can America's LNG boom prevent a catastrophic energy crisis in Europe this winter?
Beyond price spikes, how is the Hormuz crisis permanently reshaping global energy alliances and long-term supply contracts?
The 2026 European Gas Crisis: Price Surges, Global Competition, and the Urgent Push for Energy Resilience
Overview
In early 2026, escalating conflict in the Strait of Hormuz and attacks on Qatari LNG infrastructure triggered an immediate and dramatic surge in European natural gas prices. This shock marked a shift from a supply chain issue to a real supply problem, raising fears of actual gas shortages. The resulting uncertainty caused a sharp sell-off in global stock markets, with Asian and European markets hit hard. As the crisis unfolded, European leaders urgently focused on energy security, highlighting the continent’s vulnerabilities and the need for rapid contingency planning to stabilize supplies and protect economies from further disruption.