European natural gas futures rose more than 5% to above €56/MWh, extending their rally to hit an over three-year high.

European gas has surged 60% in the past two days following the shutdown of Qatar’s LNG facilities and the closure of the Strait of Hormuz amid rising tensions in the Middle East. QatarEnergy on Monday fully suspended production at its Ras Laffan LNG facility, the world’s biggest LNG export hub, which accounts for nearly 20% of global LNG supply.

The Strait of Hormuz, a key transit route for Qatari LNG exports, has also been effectively closed, further restricting flows from other major regional producers.

These disruptions is placing additional strain on Europe’s already depleted winter gas storage, raising concerns about summer restocking.

Meanwhile, China, the largest LNG importer, reportedly urged all parties involved in the Iran conflict to ensure the safe passage of vessels through the Strait and avoid actions that could further disrupt Qatari LNG exports.
Source: Trading Economics