European natural gas tops €59, a four-month high

The price of Dutch TTF natural gas, Europe's main benchmark, rose above €59 per megawatt-hour this week, its highest in about four months. The main driver was cited as the military tensions in West Asia and the disruption to tanker and ship traffic through the Strait of Hormuz, together with delays to Qatari LNG exports.

Europe is refilling gas storage ahead of the cold season, and reduced LNG supply from the Persian Gulf could make the continent's competition with Asian buyers more costly. The Strait of Hormuz is a vital channel for Iran's and the region's energy exports, and its volatility directly affects the global energy market and inflation expectations.