Natural gas prices soared by 15.5% following a military attack by the U.S. and Israel on Iran, marking a cumulative increase of 92% since late February.
Natural gas prices surged by 15.5% during trading on March 9, reaching above 61 euros per megawatt-hour, as fears of energy supply disruptions intensified following a military attack on Iran by the United States and Israel on February 28. This attack has caused a cumulative increase of more than 92% in natural gas prices, highlighting the volatility in the energy market due to geopolitical tensions. The spike in prices was particularly alarming as the natural gas market reacted to potential supply threats, prioritizing energy security amid fears that the instability in the Middle East could lead to a blockade of the critical Strait of Hormuz—one of the world's key chokepoints for oil and gas transport. In the opening of the trading session, prices had jumped as much as 30% to 69 euros before settling at slightly below that peak. Additionally, the price of Texas Intermediate crude oil (WTI) also surged by 12% on the same day, indicating a broader rise in energy prices driven by geopolitical events. The situation reflects the interconnectedness of global energy markets and underscores the impact that military conflicts can have on commodity prices, affecting economies worldwide.
