As the Middle East conflict enters its fourth week, renewed threats between the United States and Iran regarding the Strait of Hormuz and energy infrastructure have driven European natural gas prices higher. During early trading, the Dutch TTF benchmark near-month contract rose 3.9% to €61.58 per megawatt-hour.

The disruption of shipping through the Strait of Hormuz and severe damage to the world's largest liquefied natural gas (LNG) export facility—the Qatar gas plant—have contributed to a more than 90% surge in gas prices so far this month.

This supply disruption comes at a sensitive time for Europe, where EU natural gas storage levels remain below 29%, increasing the likelihood of competition between European and Asian buyers for LNG shipments.

Analysts at ANZ Bank noted, "Asian LNG buyers are closely monitoring the situation. Many are reluctant to increase purchases in the spot market due to high prices. However, if supply disruptions persist, the situation will become unsustainable."