European gas traders buy options against winter price spike
Updated
Updated · Bloomberg · May 8
European gas traders buy options against winter price spike
4 articles · Updated · Bloomberg · May 8
Trades over the past week imply benchmark European gas could hit €100 per megawatt-hour next winter, more than double current levels.
The hedging reflects expectations that a prolonged Middle East war, including disruption around Iran, could tighten supplies as winter demand rises.
Traders fear the conflict will further slow Europe's already difficult effort to refill gas inventories ahead of the next heating season.
With Mideast LNG supplies crippled for years, can Europe's economy survive another protracted energy crisis?
A bidding war for scarce LNG looms between Europe and Asia. Who will win, and at what cost?
Europe swapped Russian gas dependency for American LNG. Is this new reliance any more secure?
Iran’s Attack on Qatar’s Ras Laffan and Strait of Hormuz Blockade Trigger Global LNG Price Surge
Overview
In March 2026, Iran's missile attack on Qatar's Ras Laffan LNG facility and the closure of the Strait of Hormuz caused severe damage and disrupted global LNG supply, triggering a sharp spike in energy prices and panic in markets worldwide. Europe, already vulnerable with low gas storage after a cold winter and reduced Russian pipeline imports, faced intense competition with Asia for scarce LNG cargoes, leading to soaring prices and risks of gas rationing in the upcoming winter. The crisis exposed the fragility of global energy supply chains and accelerated Europe's urgent shift toward domestic energy resilience through renewables, nuclear power, hydrogen development, and demand reduction to secure long-term stability.