Iran-US Conflict Drives European Gas and Global Oil Prices Higher

Global energy markets experienced significant volatility as conflict escalated between Iran and the United States. Brent crude oil prices climbed to $92.09 a barrel, the highest since June 11, after Iran targeted U.S. radar and air defense installations in the Gulf and attacked two oil tankers attempting to transit the Hormuz Strait. Iran is attempting to blockade the strait, which carries one-fifth of the world's oil supplies, as leverage following a February U.S.-Israeli attack that initiated the broader conflict.

Simultaneously, European gas prices hit a four-month high, briefly exceeding €60 per megawatt-hour at the Dutch TTF hub. The surge is driven by disruptions to liquefied natural gas exports from Qatar, where monthly tanker shipments dropped from a typical 90-100 to just 26. These shortages threaten the European Union's goal of reaching 80% gas storage by November, with current levels remaining below 54%.

Energy analysts warn that the cost of securing supplies is rising sharply, and any early onset of cold weather could further inflate the expense of meeting EU targets. In the United Kingdom, officials noted that the country remains tightly bound to international market volatility, meaning domestic actions have little impact on the final gas prices paid by consumers.