Gas prices across Europe surged sharply in March, with average exchange levels rising by 59% compared to February as geopolitical tensions in the Middle East intensified and markets reacted to growing concerns over supply disruptions.
According to data from London’s ICE exchange, the average price of front-month futures linked to the Dutch TTF benchmark reached 631.9 dollars per 1,000 cubic meters, marking the first time since early 2023 that the monthly average exceeded the 600-dollar threshold. The last time prices were higher on a monthly basis was in January 2023, when the average stood at 711.6 dollars per 1,000 cubic meters.
The upward trend began on 2 March, immediately after reports of US and Israeli strikes on Iran. In the days that followed, gas prices surged by 38.2%, quickly approaching 540 dollars per 1,000 cubic meters. Throughout the month, the market remained under sustained pressure as traders priced in risks linked to both regional instability and potential supply chain disruptions.
A key driver of volatility was the uncertainty surrounding critical infrastructure, including the Strait of Hormuz, as well as disruptions affecting gas facilities across the Middle East. These developments kept prices elevated, with markets consistently trading well above levels seen over the previous two years.
The most significant spike occurred on 19 March, when prices briefly reached 853.7 dollars per 1,000 cubic meters. This jump followed a report from QatarEnergy indicating damage to two of its 14 LNG production units. The event highlighted how sensitive global gas markets remain to even localized disruptions in supply.
Despite the sharp increases, current price levels remain well below the extreme highs recorded during Europe’s energy crisis in 2021 and 2022. The all-time peak was reached in early 2022, when gas prices soared to 3,892 dollars per 1,000 cubic meters, the highest level ever observed in European gas markets.
