Renewed US-Iran clashes have heightened worries that the Strait of Hormuz energy corridor could face prolonged disruption, pushing European natural gas prices higher for a third consecutive day. The Dutch front-month futures contract, the regional benchmark, climbed as much as 4.3% on Wednesday to EUR 75.33 per megawatt-hour (equivalent to USD 25.61 per million British thermal units), marking the highest intraday levels since January 2023, with the October contract gaining over 10% on the week.

Prospects for a swift resumption of shipping through the Strait of Hormuz now appear increasingly remote. The United States conducted strikes against Iran for a second straight day, while President Trump downplayed the likelihood of any agreement to end the conflict that has now persisted for more than six months. Within hours, Tehran launched retaliatory action targeting Jordan, Bahrain, and Kuwait, all of which host US military personnel.

European nations are struggling to replenish natural gas inventories ahead of the winter season, and the latest surge in prices intensifies competition with buyers in Asia. As both regions vie for limited gas supplies, the uptick in European prices is likely to draw additional liquefied natural gas cargoes towards Europe. BMI, a Fitch Solutions unit, noted in a report: "The demand for restocking ahead of winter will lift European import needs and may encourage more shipments to be redirected from east to west," adding that this scenario would also exert upward pressure on Asian benchmark gas prices.