European natural gas prices surged to levels last seen during the energy crisis triggered by Russia's invasion of Ukraine, when severe supply disruptions sent global markets into turmoil.
The catalyst was an overnight Truth Social post from President Trump declaring "ECONOMIC D-DAY" against Iran. The announcement raises the probability of prolonged disruption in the Strait of Hormuz, a critical maritime transit corridor for Gulf energy exports.
For Europe, continued disruptions in the Strait of Hormuz would constrain access to Gulf LNG, intensify competition for seaborne cargoes, and deepen the continent's reliance on US supplies. With European storage inventories already well below seasonal norms and the winter replenishment window narrowing, traders are slapping a premium on natural gas prices on Thursday.
Dutch front-month futures, Europe's gas benchmark, rose as much as 2.5% today and soared above 65 euros per megawatt-hour, a level last seen in 1Q23.
Trump stated in an overnight Truth Social post that, with Tehran's military and military-industrial base reduced to "now rubble" and its "currency worthless," he will unleash severe economic consequences against "ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."
« Back to The Culture War
