EU Natural Gas Surge Continues
2026-03-03 07:33
By
Judith Sib-at
1 min. read
European natural gas futures extended their rally, climbing nearly 40% to above €60/MWh, the highest level since 2023, after surging almost 35% in the previous session, as escalating tensions in the Middle East heightened concerns over potential disruptions to LNG supplies to Europe.
QatarEnergy on Monday halted LNG production after Iranian drones struck the Ras Laffan and Mesaieed facilities, which are responsible for roughly one-fifth of global LNG output.
This interruption could affect about 15% of Europe’s LNG imports, tightening global supply and intensifying competition for alternative sources.
Compounding the situation, Iran moved to block traffic through the Strait of Hormuz, further constraining exports from other major Middle Eastern producers.
These supply risks come at a time when EU gas storage is low, standing at 31%, below the 40% recorded at this time last year.