Israel and Iran scared gas prices in Europe

Gas quotes on European stock exchanges are rising after the Israeli strike on military and nuclear facilities in Iran. The escalation of the conflict threatens to block the Strait of Hormuz, through which 20% of the world's LNG is exported.

On June 13, gas prices in Europe jumped by $14. Gas supplies for a month in advance from the TTF hub have risen in price to $ 450 per thousand cubic meters. This is the highest price level since the beginning of April.

The jump occurred after Israel attacked Iran's military and nuclear facilities.

Over the past few years, Russian gas supplies to Europe have declined significantly due to sanctions and counter-sanctions, and the main source for countries Liquefied natural gas, which is transported, including from the Persian Gulf countries, has become the EU.

"We may see a much sharper rise in prices if events affect energy supplies from The Persian Gulf. In particular, more than 20% of the world's LNG passes through the narrow neck of the Strait of Hormuz," says Alexey Grivach, Deputy Director of the National Energy Security Fund (NWF).

Earlier, Tehran threatened to block the strait in case of an attack. How it will be now is unknown.

It is known that this season the countries The EU needs an additional 30 billion cubic meters to restore reserves. And LNG supplies are the only source.

Last year, the share of Qatar, which carries LNG through the Strait of Hormuz, amounted to 10% in EU imports. At the same time, the decline in Qatari supplies to Asia will force local consumers to buy more American LNG, which is now the main source of liquefied natural gas for EU countries.