European gas prices reach highest level since 2022, rising 4.35%

European natural gas prices rose to their highest level since 2022, with the EU Gas index briefly exceeding €100 per megawatt hour (MWh), according to Anadolu Agency.

The index was up 4.35% at 15:30 GMT, reaching €100 per MWh. It was later hovering just below that level.

Intensifying conflict in the Middle East has heightened concerns about winter energy supplies, particularly liquefied natural gas (LNG) shipments from the Persian Gulf, which previously accounted for nearly a fifth of global supply.

Those concerns have driven up prices for crude oil, transport fuels, natural gas, electricity and food. Brent oil futures rose 2.2% to $116 per barrel, while heating oil prices gained 1.6% to $4.8 per gallon.

Markets expect natural gas prices to remain elevated for at least another year, even if the conflict ends and winter weather is mild. Europe needs to replenish storage levels that have fallen to record lows.

Rising wholesale natural gas costs are increasingly feeding through to household and industrial energy bills. Gas-fired power plants generally set electricity prices during peak demand hours.