European Gas Prices Hit Five-Month High After Trump Iran Threats

European natural gas prices climbed to a five-month high, exceeding €65 a megawatt-hour, after Donald Trump announced plans to impose an "economic D-Day" on Iran. The price spike occurs amid a stalemate in the Persian Gulf war that threatens global energy supplies and has left European gas storage sites only 62% full, the lowest seasonal level since 2009.

Supply pressures are further intensified by increased competition for liquefied natural gas from Asian markets, including a significant winter tender from Korea Gas Corporation. In response to the volatility, European governments have committed more than €11.8 billion in fiscal measures to protect consumers. In the United Kingdom, energy bills are projected to reach a three-year high by October.

German grid operators have warned that winter fuel reserve goals are now "virtually unattainable," raising the risk of supply shortfalls during the heating season. Meanwhile, the Government of China, a major buyer of Iranian oil, stated that the economic threats from the United States would not work.