European natural-gas prices have topped 100 euros a megawatt-hour for the first time in nearly four years, as markets grow increasingly worried about renewed escalation between the United States and Iran.
The jump reflects the sharp repricing of risk across energy markets. Traders are bracing for the possibility that a broader conflict in the Middle East could disrupt supplies flowing through key shipping routes, tightening an already sensitive market for natural gas in Europe.
Europe has spent the past several years working to reduce its dependence on Russian gas and to build up alternative supplies, including liquefied natural gas shipped from the United States and other producers. That diversification has left the continent more exposed to global price swings, and any threat to LNG shipments can quickly feed through to benchmark prices.
The move back above the 100-euro mark marks a notable milestone, recalling the extreme volatility of the energy crisis that followed Russia's full-scale invasion of Ukraine. Whether prices hold these levels will depend largely on how tensions between Washington and Tehran develop in the coming days and weeks.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing