European gas prices are rising due to fears of escalation between Israel and Iran. The conflict could disrupt shipping in the Strait of Hormuz, through which almost 20% of global oil production passes, as well as a significant portion of global gas production.
Reported by UNN with reference to Bloomberg.
Details
European natural gas prices are rising for the sixth consecutive day, marking the longest period in the last four weeks. The military conflict between Israel and Iran is causing concerns about vessel movement through the Strait of Hormuz, a key energy trade route.
Iran may close the Strait of Hormuz waterway. About one-fifth of the world's LNG trade passes through the narrow passage.
So far, loaded LNG carriers heading south have passed through the strait without delays, while three tankers heading north have been waiting outside the waterway, Bloomberg writes.
There are also fears that Tehran might decide to attack tankers. In this regard, oil and gas market observers are concerned. On Tuesday, Qatar asked liquefied natural gas vessels to wait near the strait until they are ready for loading.
Meanwhile, Israel has announced that its own natural gas exports may resume as early as tomorrow after having to halt supplies to Egypt last week.
Recall
Prices for Brent and West Texas crude oil have risen.
Oil prices rose in Asian trading on Wednesday, increasing by 4% compared to the previous session due to fears that the Iran-Israel conflict could disrupt supplies.