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European natural gas prices spike to their highest level since the start of the Iran conflict while storage inventories dwindle, raising winter supply concerns

Executive summary: Since early March US strikes on Iran, the European benchmark gas price has nearly doubled, reaching its highest point since the war began, and gas storage sites across the EU are emptying faster than usual. Low storage levels heighten the risk of supply shortfalls during the winter heating season, which could drive up household and industrial energy costs and prompt government intervention.

Who is involved: European gas traders, storage operators, EU energy regulators, and consumers across the continent.

Likely next: Market participants will monitor upcoming storage injection deadlines and potential EU emergency measures, while traders watch for any further geopolitical developments affecting supply.

Since early March US strikes on Iran, the benchmark European gas price has almost doubled, reaching levels not seen since the war began. At the same time, gas storage sites across the EU are emptying faster than usual, leaving the bloc poorly prepared for winter heating demand. This combination of price pressure and low inventories heightens the risk of a supply shortfall that could affect households, industry and power generation.

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