Gas for the European market is most expensive since early April after US attack on Iran

The wholesale price of gas for the European market is rising today. It has reached its highest level since early April, surpassing 42 euros (around CZK 1,040) per megawatt-hour (MWh). The gas market is reacting to the attack on Iranian nuclear facilities carried out by the US military overnight on Sunday.

The key July gas futures contract was trading at more than 42.40 euros on the Title Transfer Facility (TTF), a virtual trading hub in the Netherlands, this morning. This was its highest level since early April. It later gave up some of its gains, with the price last trading slightly above 41.50 euros, still about one and a half percent higher than on Friday.

The United States intervened over the weekend in the conflict between Israel and Iran. It bombed underground Iranian nuclear facilities, saying the action was necessary to prevent Iran from developing a nuclear bomb.

US President Donald Trump’s actions have raised international concerns about the war in the Middle East spreading. This could also lead to shipping through the Strait of Hormuz being halted. Iran’s parliament has reportedly approved this, according to Iranian television, but the final decision will be made by Iran’s Supreme National Security Council. The strait is crucial for transporting oil and liquefied natural gas (LNG) from the Middle East to the global market.