Diesel fuel prices are displayed at a gas station in England in March. [AFP]
Diesel fuel prices are displayed at a gas station in England in March. [AFP]

European natural gas prices soared to their highest level in more than four months as the Middle East conflict intensified anew.

Dutch TTF futures — the European natural gas benchmark — briefly surpassed 60 euros ($68) per megawatt-hour (MWh) on Monday, according to the Guardian. That approaches the year-to-date high recorded in the early stages of the Middle East war that broke out in late February.

The price spike comes as the United States and Iran — which had at one point been discussing an end to the war — launched military strikes against each other, heightening regional tensions and stoking fears of shipping disruptions through the Strait of Hormuz.

Before the war broke out, the Strait of Hormuz served as a critical maritime corridor through which roughly 20 percent of the world's crude oil and natural gas shipments passed.

Analysts at market research firm ICIS said the Middle East conflict has delayed the normalization of liquefied natural gas (LNG) exports from Qatar, squeezing supply during the summer storage season when Europe typically fills its gas reserves ahead of winter. Europe's gas storage level currently stands at around 54 percent — about 10 percentage points below the 64 percent recorded at the same point last year.


yeongdai@heraldcorp.com