European gas prices briefly climbed above €100/MWh for the first time since 2022, as renewed concerns about energy supplies from the Middle East tightened sentiment across commodity markets. The European benchmark rose about 4.35% during trading before falling back below €100/MWh. Traders are increasingly watching for possible disruption to LNG shipments from the Persian Gulf, which accounts for a significant share of global LNG supply.
Europe is entering this period with relatively low gas inventories and substantial storage needs. Buyers must replenish those stocks, while any reduction in LNG availability could leave them competing more aggressively for cargoes. The supply concern is adding pressure to the market as European buyers work to secure gas.
Pressure has also reached other energy markets. Brent crude futures gained 2.2% to $116/barrel. Elevated gas costs continue to support European wholesale electricity prices, particularly when gas-fired generation is needed to meet peak demand.
Storage needs underpin longer-term price expectations
The longer-term outlook remains challenging, with market expectations indicating that gas prices could stay elevated well beyond the immediate geopolitical disruption. European buyers are expected to rebuild inventories and secure supply for the future winter. The need to replenish storage is contributing to expectations of sustained high prices.
Prolonged high gas prices would raise costs for households and industrial consumers. They would also add to inflationary pressure. Energy-intensive industries in Europe could face weaker competitiveness as a result.
