European gas prices briefly climbed above €100/MWh for the first time since 2022, as renewed concern about Middle East energy supplies weighed on commodity markets. The European benchmark rose about 4.35% during trading. It later slipped back below €100/MWh.
Traders are increasingly watching for possible disruption to LNG shipments from the Persian Gulf. The region accounts for a significant share of global LNG supply. Europe is entering this period with relatively low gas inventories and substantial storage replenishment needs.
LNG supply and storage needs
A reduction in LNG availability could force European buyers to compete more aggressively for cargoes. Pressure has also spread to other energy markets. Brent crude futures rose 2.2% to $116/barrel.
Elevated gas costs continue to support European wholesale electricity prices. The effect is particularly pronounced when gas-fired generation is needed to cover peak demand. Market expectations also point to gas prices remaining high well beyond the immediate geopolitical disruption.
Consumer and industrial costs
European buyers are rebuilding inventories and securing supply for the coming winter. Sustained high gas prices would raise costs for households and industrial consumers. They would also add to inflationary pressure and weaken the competitiveness of energy-intensive European industries.
