European natural gas prices continued to rise after senior Israeli military officials confirmed that their country has no choice but to respond to an attack by Iranian missiles and drones. This was reported by Bloomberg, according to UNN.
Details
It is noted that futures on the TTF hub in the Netherlands increased by 3% and reached 32 euros per megawatt-hour.
Contracts are up about 18% since last Thursday, as markets began to factor in major geopolitical risks, including potential disruptions from Russian strikes on Ukraine's energy infrastructure.
European and U.S. officials have stepped up their calls for Israel to avoid escalating the conflict, which could spark a wider war. A broader conflict in the region risks pushing up global energy prices at a time when central banks are still struggling to tame inflation.
While Europe has completed an exceptionally mild winter with high gas stocks, traders are constantly monitoring signs of supply disruptions. The region does not currently receive much gas from the Middle East, but its dependence on global markets has increased after it lost most of its pipeline flows from Russia in 2022.
Meanwhile, deliveries from Norway's leading supplier remain low due to unplanned maintenance at some of the country's facilities that began last weekend.
Recall
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