European natural gas prices eased on Thursday as traders locked in gains following a surge to multi-year highs earlier in the week.
The Dutch front-month contract fell 1.7% to €72.23 per megawatt-hour (MWh), retreating from a peak of €74.32 reached earlier, according to market data. In Great Britain, the NBP wholesale gas contract dropped 2.7% to 178.08 pence per therm, pulling back after breaching 183 pence in the prior session—its highest level since late 2023.
The retreat followed two consecutive sessions of declines, with prices easing after a sharp rise driven by heightened Middle East tensions. The British NBP contract had earlier surpassed highs set during the fifth month of the conflict in the region, underscoring the volatility in energy markets amid ongoing geopolitical instability.
Supply disruptions in the Strait of Hormuz, a critical chokepoint for global liquefied natural gas (LNG) shipments, have further amplified market jitters. The strait, which handles roughly one-fifth of seaborne LNG traffic—primarily originating from Qatar—has seen commercial navigation severely restricted due to military engagements. Vessel-tracking data indicates traffic remains at a fraction of pre-war levels.
Direct military actions have intensified, including U.S. air strikes on Iranian military sites in the Persian Gulf and retaliatory Iranian missile strikes on U.S. facilities in Jordan. These developments have heightened competition among European and Asian utilities for spot LNG cargoes from the Atlantic basin, tightening supply conditions and supporting elevated price levels.
European importers are increasingly reliant on alternative sources to offset reduced flows from traditional suppliers, with the Middle East conflict disrupting established trade routes and increasing procurement costs.
