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23.07.202601:42:54UTC+00EU Gas Extends Rally on Winter Supply Risks

European natural gas prices extended their rally on Thursday, approaching €63 as escalating conflict in the Middle East intensified concerns over the security of LNG supplies to Europe ahead of winter. The United States and Iran continued to exchange strikes, with both sides downplaying the likelihood of peace talks, thereby increasing the risk of sustained disruptions to energy exports from the region. Iran-backed Houthi militants have also entered the fray, claiming to have targeted two Saudi Arabian tankers in the Red Sea. EU gas prices have now returned to levels last seen at the height of the conflict, as reduced LNG flows from the Persian Gulf fuel stronger competition with Asian buyers, while unseasonably high temperatures across Europe are driving up power demand. Equinor, Europe’s largest gas supplier, has warned that the bloc is unlikely to meet its 80% gas storage target before the start of the heating season, leaving the market more exposed to pronounced price volatility once colder weather sets in.

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