Gas prices continued to rise sharply in Europe on Tuesday as the US and Israeli assaults on Iran shook the world’s energy markets and reignited concerns about a prolonged shock. Yousef M. Alshammari, head of the London College of Energy Economics, told Euronews Business, “This has caused a rush in spot markets and increased risk premiums due to immediate fears of reduced LNG availability to Europe.
At around 12:30 CET on Tuesday, the Dutch TTF, Europe’s benchmark gas contract, surged to over €60 per megawatt hour (MWh), a substantial increase from the low €30s at the end of last week. “This situation remains highly fluid, with markets pricing in significant uncertainty,” Alshammari added, emphasizing that political efforts, shipping through the Strait of Hormuz, and LNG flows from Qatar could all have a big impact on prices.
How a fresh energy shock would affect Europe’s already precarious recovery and supply system, which remains more vulnerable to disruption than before 2022, is the crucial question.With seaborne LNG taking the place of Russian pipeline gas, the continent has gradually recovered from the crisis brought on by Russia’s full-scale invasion of Ukraine.
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