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Natural Gas prices climb on fears of LNG disruption via Hormuz – ING

European natural Gas prices rose to their highest level since early April on Monday, after jumping by 4.8% last Friday, ING's commodity experts Ewa Manthey and Warren Patterson note.

Energy markets on edge amid talk of escalation

"Similar to Oil, the biggest concern is that a further escalation would disrupt the Strait of Hormuz. Any disruptions to shipping through the Strait of Hormuz would also have a significant impact on the global LNG market."

"Qatar, which makes up around 20% of global LNG trade, uses this route to export LNG. There is no alternative route. This would leave the global LNG market extremely tight, pushing European Gas prices significantly higher."

"The European Commission is expected to propose a measure today to end the EU’s reliance on Russian pipeline and LNG supplies by the end of 2027, with a gradual ban on Russian Gas imports starting next January and prohibit services to Russian companies at EU LNG terminals."

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FXStreet Insights Team

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