European benchmarks have leapt over 50% as fighting increases shipping risks through the crucial Strait of Hormuz

Gas markets around the world were rattled on Monday, with benchmark European natural gas prices rising sharply and broader energy markets on edge after Middle East tensions increased the risk to supplies via the critical Strait of Hormuz.

European benchmark gas futures surged by around 50% – their biggest single day move since March 2022 – after LNG tankers largely stopped transiting the Strait of Hormuz, the narrow waterway between Iran and Oman that carries about a fifth of global oil and gas shipments, over the weekend.

The spike was compounded by a drone strike on QatarEnergy’s major LNG complex at Ras Laffan, which forced production to be halted.

Crude markets also rallied, with Brent futures climbing to multi-month highs as the escalation further constrained energy flows from the region.

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