EU Gas Prices Climb Amid Renewed Middle East Tensions

European natural gas prices climbed to €48.7 per MWh on Wednesday, building on strong gains from the previous session as renewed tensions in the Middle East stoked fears of a new wave of supply disruptions. The US military launched a new wave of strikes against Iran and revoked a license permitting the country to sell oil in retaliation after three merchant vessels were struck in the Strait of Hormuz. The fresh attacks cast doubt on the fragile diplomatic understanding between the two nations that had reopened the vital shipping route last month. Additional support came from forecasts of an intense heatwave across parts of Northwest Europe, which is expected to boost electricity demand for air conditioning and increase gas-fired power generation. The rise in demand comes amid the slower-than-usual seasonal pace of gas injections into European storage facilities. Gas flows from Norway, now Europe’s single largest pipeline provider, fell following unexpected maintenance.