Tensions in the Strait of Hormuz and tanker attacks drive up natural gas prices in Europe
Natural gas prices in Europe started the new week with an increase due to security risks in the Strait of Hormuz and tanker attacks.
Natural gas prices for November delivery on the Dutch-based TTF, which serves as the benchmark in European markets, rose as escalating tanker attacks in the Strait of Hormuz and geopolitical tensions triggered concerns over LNG supply.
Price Increase in Markets
The price of natural gas per megawatt-hour for November contracts on the Dutch-based TTF, accepted as the benchmark for pricing in Europe, had closed Friday at 81.43 euros.
In the new week, prices recorded a 1.3 percent increase compared to the close as of 09:45, rising to the level of 82.50 euros.
Attacks in the Strait of Hormuz
This upward movement in prices was driven by the increasing tanker attacks in the Strait of Hormuz and the escalating tension in the region, which heightened risks regarding liquefied natural gas supply.
Before the war, approximately 20 percent of global LNG trade was conducted through the Strait of Hormuz.
Tankers Hit
United Kingdom Maritime Trade Operations announced that a tanker exiting the Strait of Hormuz was struck on the port side by unidentified ordnance, and a fire broke out on the ship.
The Islamic Revolutionary Guard Corps of Iran also announced that a supertanker attempting to pass through the strait hit a naval mine, and an explosion occurred in the engine room following the impact.
Energy Ceasefire Announcement
On the other hand, US President Donald Trump's announcement that Russia and Ukraine had agreed on an energy ceasefire to take effect immediately partially eased concerns in the markets.
Stating that the two countries had mutually agreed not to attack each other's energy facilities, Trump called on the parties to adhere to this agreement.
Storage Occupancy Rates
According to Gas Infrastructure Europe data, the occupancy rate of natural gas storage facilities in European Union member countries currently stands at 73.6 percent.
The current occupancy rate remains below the five-year average of 87 percent for the same period.
Winter Supply Outlook
The European Network of Transmission System Operators for Gas reported in its 2026-2027 Winter Supply Outlook report that the continent has the flexibility to meet winter demand.
However, the report emphasized that limited LNG supply could cause storage occupancy rates to fall well below 30 percent by the end of winter.