European natural gas futures jumped 20% to €52/MWh, following a dramatic 35% increase in the previous session as rising tensions in the Middle East threatened disruptions to LNG supply to Europe. QatarEnergy on Monday halted LNG production after Iranian drones struck the Ras Laffan and Mesaieed facilities, which are responsible for roughly one-fifth of global LNG output. This interruption could affect about 15% of Europe’s LNG imports, tightening global supply and intensifying competition for alternative sources. Compounding the situation, Iran moved to block traffic through the Strait of Hormuz, further constraining exports from other major Middle Eastern producers. These supply risks come at a time when EU gas storage is low, standing at 31%, below the 40% recorded at this time last year.
