European natural gas futures climbed further toward €52/MWh on Thursday, as the Middle East war continued to disrupt LNG shipments to Europe. On Wednesday, suspected Iranian drones struck three vessels in and near the Strait of Hormuz, heightening concerns over prolonged supply interruptions. The conflict has led QatarEnergy to suspend operations at its LNG facilities, which account for roughly 20% of global supply. LNG exports from the UAE also remained largely halted as tankers avoided the Strait due to security risks. These disruptions have intensified competition for US LNG, which has become a vital source of gas for Europe after reducing its reliance on Russian supplies. In response, the EU has begun exploring measures to curb rising prices, including a potential price cap. EU gas storage levels are currently below 30%, nearly 20% down from a year ago, underscoring Europe’s vulnerability to further supply shocks. So far this month, prices have surged over 60%.
