The European benchmark for natural gas prices, the TTF (Title Transfer Facility) contract traded in the Netherlands, rose more than 33% around 09:40 (mainland Portugal time), driven by a new wave of attacks on Iran.
Specifically, the price of natural gas in Europe climbed 33.2% to €57.596 per megawatt-hour around 09:38, a surge fueled by fresh strikes against Iran carried out by Israel and the United States, as well as threats by Iran’s Revolutionary Guard to attack any vessel crossing the Strait of Hormuz — a strategic corridor for the transportation of gas and oil.
The commodity had previously traded as high as €59.165, representing a 36.8% increase compared to the €43.25 closing price recorded on Monday.
European stock markets were also posting sharp losses, having opened down between 1% and 2%. By 09:30, they were falling between 2.3% and 3.5%, with Milan and Frankfurt among the hardest hit.
Alongside gas, oil prices were also rising by more than 5%, while gold edged slightly lower after starting the day with a gain of nearly 0.3%.
Iran’s Revolutionary Guard confirmed today an attack on a tanker allegedly linked to the United States in the Strait of Hormuz, threatening to strike any vessel passing through the waterway.
The Strait of Hormuz is the world’s most important oil and gas transit route, through which approximately one in every five barrels of oil passes. Any disruption to this route has an immediate impact on the global economy, according to the US Energy Information Administration (EIA).
Israel and the United States launched a military offensive against Iran on Saturday to “eliminate the imminent threats posed by the Iranian regime,” and Tehran responded with missiles and drones against US military bases in the region and Israeli targets.
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According to the Iranian Red Crescent, the Israeli and US strikes have killed 787 people since Saturday. The US military has confirmed the deaths of six American service members.
