European Natural Gas Hits a Four-Month High as Reduced Persian Gulf LNG Cargoes Tighten the Market

European natural gas prices climbed above 63 euros per megawatt hour on Friday, 24 July, reaching their highest level in four months. The front-month contract at the Dutch TTF hub, Europe's benchmark, rose about 0.4 percent and is up nearly 8 percent on the week and more than 42 percent since the start of July.

The rally is driven mainly by reduced LNG cargo flows from the Persian Gulf, as military tensions and disrupted tanker and gas-carrier traffic through the Strait of Hormuz curb supply. With flows tighter, Asian buyers have outbid European utilities for spot cargoes, diverting some shipments away from European import terminals. An intense heatwave across Europe has also lifted power demand for cooling, adding to gas consumption.