European natural gas prices surged as the Middle East war disrupted energy markets and threatened global supplies. Benchmark futures jumped as much as 30% on Monday, extending their biggest weekly advance since the energy crisis. The spike follows oil prices climbing above $100 a barrel as major Middle East producers curbed output and the Strait of Hormuz remained effectively closed.

Europe faces heightened vulnerability as it emerges from winter with depleted storage tanks. The region must now buy more LNG cargoes this summer to refill them, competing with Asian buyers for limited supplies if Middle Eastern flows can't reach global markets. Rabobank energy strategist Florence Schmit noted that markets are waking up to prolonged supply disruptions across the entire energy value chain, expecting issues to last about three months.

Qatar's Ras Laffan LNG plant, the world's largest, remains largely intact after its closure last week, though restart could take weeks or months. Goldman Sachs raised its forecast for European gas prices in the second quarter to €63 a megawatt-hour from €45, assuming Qatar's LNG shipments stay at zero through late March. Dutch front-month futures traded 17% higher at €62.56 a megawatt-hour by 8:31 a.m. in Amsterdam, signaling continued market stress.