European natural gas prices surged by 6.4% on Monday amid the ongoing closure of the Strait of Hormuz and continued supply chain disruptions, as European nations scramble to build up reserves ahead of the upcoming winter season.
Prices on the benchmark Title Transfer Facility (TTF) index rose 6.4% to reach €59 ($68) per megawatt-hour by 12:00 GMT (15:00 Jerusalem Time).
The price spike comes as European countries race to replenish their gas reserves before winter. Inventory levels for August have dropped to roughly 57% of total capacity—marking the lowest level recorded for this time of year since 2011.
The International Energy Agency (IEA) warned last July that any prolonged delay in resuming gas exports from the Gulf region threatens to extend supply shortages over a longer horizon.
The agency noted that extended disruptions would severely impact importing nations, particularly European states attempting to refill storage facilities in preparation for the winter months.
The Strait of Hormuz has become a focal point of global economic concern due to the far-reaching impact of its closure. Iran shut the maritime choke point in response to military action launched against it by the United States and Israel on February 28.
