European and British gas benchmarks reached levels not seen since the 2022 energy crisis on Friday. Both are heading for monthly gains of more than 40% after reports of White House briefings on military options against Iran raised fears of supply disruption in the Persian Gulf.
European and British natural gas benchmarks surged on Friday to levels not seen since the 2022 energy crisis. Fears of severe supply disruptions in the Persian Gulf drove the move.
TTF hits a four-year high
The front-month Dutch Title Transfer Facility contract, the European wholesale benchmark, climbed 5.33% to 103.10 euros per megawatt-hour, a fresh four-year high. The contract has advanced 42.5% across October.
The British equivalent jumped 5.5% to 256.47 pence per therm, a 40% gain over the month. Both contracts were on track for a fourth consecutive monthly increase.
Briefing on Iran options fuels the rally
Momentum built after The Wall Street Journal reported that U.S. Central Command chief Admiral Brad Cooper briefed President Donald Trump on Thursday on prospective military options targeting Iran. Defense Secretary Pete Hegseth and other senior national security officials attended, and the meeting reviewed the continuing U.S. naval blockade and preparations for potential renewed major combat operations, the newspaper reported.
Trump added to the anxiety by suggesting fresh strikes could follow the Nov. 3 U.S. midterm elections. Asked on Wednesday whether he was considering expanding military attacks against Tehran, Trump replied: "Anything’s possible."
Traders see little room for quick diplomacy
Traders and utilities fear that any widening of combat could halt liquefied natural gas carrier traffic through the Strait of Hormuz, where tanker transit has already faced record disruptions this month.
Meanwhile, U.S. Vice President JD Vance has established direct contact with senior Iranian security official Mohsen Rezaei, people familiar with the matter told Reuters. Even so, with European Union gas inventories being drawn down ahead of winter, energy traders have shown little appetite to bet on a rapid diplomatic breakthrough.
Source: Investing.com
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