European natural gas prices have climbed approximately 25% since the start of July, driven by renewed attacks on tankers in the waters surrounding the Strait of Hormuz.
The disruption to this critical shipping chokepoint is tightening the supply chain for liquefied natural gas (LNG), creating immediate volatility in European energy markets.
The price spike reflects growing anxiety over route security and the potential for prolonged supply constraints.
With the Strait of Hormuz handling a significant portion of global LNG shipments, any sustained disruption forces buyers to compete for limited alternative cargoes, pushing benchmark prices higher.
The TTF gas futures contract has been the primary instrument reflecting this risk premium.
Analysts suggest the situation is unlikely to resolve quickly.