European gas caps strong weekly gain on Middle East supply escalation

European wholesale natural gas prices surged on Friday, on course to cap the week at their highest levels since late 2022, as an escalation in Middle East military conflict and diplomatic evacuations intensified anxieties over global LNG supply continuity ahead of winter.

The benchmark rose 3.8% on Friday to trade at 93.40 euros per megawatt-hour (MWh), locking in a weekly gain of nearly 7%.

In Great Britain, the equivalent similarly advanced 3.5% to 229.00 pence per therm, on course to finish the week 6.2% higher. Both benchmarks consolidated at 2022 peaks as energy trading desks priced in an expanding geopolitical risk premium.

The immediate catalyst behind Friday’s price jump was a severe deterioration in Middle Eastern security conditions, which threatens critical seaborne transit corridors.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →