European benchmark natural gas prices have surged to record highs since the start of the Iran conflict, the Financial Times reports.
Prices have topped €86 per megawatt-hour, their highest since the 2022 energy crisis. This is a rise of around 170 percent since the start of the Iran conflict, when they were around €32 per megawatt-hour.
The main factors weighing on the energy market have been political uncertainty over Russian diesel supplies, as well as unscheduled maintenance work at Norway’s Karsto processing plant and key offshore fields, which has led to a sharp reduction in pipeline exports.
The situation is further exacerbated by the ongoing conflict over Iran, which is restricting the passage of liquefied natural gas-carrying tankers through the Strait of Hormuz and forcing carriers to use longer routes around Africa.
An additional factor is the official start of the heating season in Europe on October 1 and the forecast of cold weather, amid the 73-percent fullness of the EU's underground natural gas storage facilities.