European gas prices jump as US-Iran tensions escalate
European gas prices have surged following rising tensions in the Middle East, as failed ceasefire talks between Iran and the United States unsettle global energy markets.
On Monday morning, gas prices on the Dutch benchmark market rose by around 12 per cent to nearly 49 euros per megawatt hour for May delivery. Prices briefly spiked by almost 18 per cent overnight, reaching 51 euros.
The increase comes after the US announced a naval blockade targeting shipping to and from Iranian ports. The move follows unsuccessful negotiations between Washington and Tehran aimed at securing a ceasefire.
US president Donald Trump said the action would begin immediately. Military officials confirmed enforcement from 16:00 Belgian time. The blockade applies to vessels entering or leaving Iranian ports, though ships passing through the Strait of Hormuz to non-Iranian destinations will not be disrupted.
The development signals a stronger effort to restrict Iran’s oil exports and weaken its economy. Analysts warn the impact could be severe: oil revenues are vital to Iran’s finances.
Energy markets reacted swiftly. Brent crude rose by more than 7 per cent to above 102 dollars per barrel, while US WTI crude climbed over 8 per cent to just under 105 dollars.
The Strait of Hormuz remains a critical route for global energy supplies, carrying roughly one-fifth of the world’s oil consumption. Uncertainty over how strictly the blockade will be enforced, and whether it can be bypassed, continues to weigh on markets.
© PHOTO GIUSEPPE CACACE / AFP
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