Europe Gas Prices Hit Four-Year High After Middle East LNG Shock

Damage at Qatar’s Ras Laffan plus shipping threats through key chokepoints have removed roughly 20% of global LNG, leaving European storage low and raising the risk of higher winter prices.

Overview

A sharp supply squeeze has driven Dutch TTF front-month prices toward €79–80/MWh, the highest level in nearly four years and a multiweek upward run in European gas markets.
Iranian missile damage to Qatar’s Ras Laffan has knocked out about 17% of Qatar’s export capacity and QatarEnergy has extended force majeure on some cargoes, tightening short-term availability.
Military exchanges and attacks on shipping in the Strait of Hormuz and Red Sea are constraining tanker traffic on routes that carry roughly 20% of global LNG, which limits quick rerouting of deliveries.
European gas storage sits around 67% of capacity versus a five-year seasonal average near 84%, reducing the buffer ahead of winter and leaving households and utilities vulnerable to price spikes.
Higher energy costs are feeding into policy and markets as U.S. and spot-exposed LNG exporters gain from higher prices and the European Central Bank raised rates to address energy-driven inflationary pressure.