European natural gas futures surged back to above the €50/MWh on Wednesday, over 60% higher since the start of March amid growing concerns about supply shortages following the halt of LNG shipments from the Persian Gulf. Attacks from Iran to GCC nations and Israeli-US forces picked up in magnitude, dimming bets of imminent de-escalation. The war drove QatarEnergy to halt operations in their liquified natural gas facilities, responsible for 20% of the global market. Additionally, LNG shipments from the UAE remained halted as tankers refrained from routing through the Strait of Hormuz. The events lifted competition for US LNG that has been key to European power amid the EU’s effort to become independent from Russian supplies. Consequently, the EU has already started considering options to lower prices, including a possible cap on prices and state aid measures. Natural gas storage within the EU were around 29.4%, nearly 20% down from the previous year.
