European gas prices hit highest level in more than three years

European gas prices have climbed to their highest level in more than three years after Iran and the United States resumed mutual attacks. The Dutch TTF benchmark rose about 6% on Tuesday evening to 74.14 euros per megawatt-hour, reaching its highest point since January 2023.

Fears of supply interruptions are adding pressure to a market already weakened by low storage levels. European gas facilities were around 65% full, according to Gas Infrastructure Europe. That is the lowest level recorded for this point in the year since records began in 2011, and about 12 percentage points below last year's level.

Europe would need to inject 25 billion cubic meters of gas between August and October to reach its target of filling storage facilities to 80% by Nov. 1. That would require 9 billion cubic meters more than during the same period last year. The European Union expects that only about 14 billion cubic meters will be available under current conditions.

A cold winter could push prices sharply higher, as Europe would compete more aggressively with Asia for limited supplies. Consumer protection groups in Germany have also warned of a substantial increase in prices because of the low storage levels.

Oil prices rose as well after the latest attacks in the Gulf region. Brent crude gained more than 4% to $94.65 a barrel, while U.S. West Texas Intermediate rose more than 5% to $90.22. Both reached their highest levels since late July. The article said Iran had largely blocked the Strait of Hormuz, a key route for global trade, since the war began six months ago, while the United States imposed a naval blockade on Iranian ports. Oil and gas prices have risen sharply worldwide as a result.