European gas prices climbed to their highest level since late 2022 as reduced shipping through the Strait of Hormuz heightened concerns over Middle Eastern energy supplies just as Europe accelerates storage injections ahead of winter.
The Dutch TTF October contract traded at €78.77/MWh on Sept. 9, up 3.9% from the previous close and its highest since the second half of December 2022.
Commercial vessel traffic through Hormuz has slowed sharply, with an average of just 10 vessels per day crossing the strait over the previous 10 days, according to data cited in the report, the lowest rate since May.
The rise in gas prices followed a further escalation involving Iran and the United States, increasing concern that disruption to one of the world’s most important energy shipping routes could tighten international LNG availability.
The timing is particularly sensitive for Europe. Utilities are trying to rebuild inventories ahead of the winter heating season, creating additional demand for available cargoes.
Any prolonged reduction in shipping through Hormuz would therefore compete directly with Europe’s seasonal storage requirements and could keep LNG and European hub prices elevated even before heating demand begins to rise materially.
For European power markets, the implications extend beyond gas itself. At current gas prices, gas-fired generation becomes substantially more expensive, increasing the potential for sharp electricity price movements during periods when renewable supply is weak.
