Europe Gas Prices Extend Rally as Middle East Conflict Escalates European gas prices, which had surged to their highest level in four years, saw a sharp reversal as traders reassessed the impact of U.S. military actions in the Middle East. Benchmark futures fell as much as 16% in a single session, though prices later rebounded slightly. Despite the decline, gas prices remain more than 50% higher than they were when the U.S. and Israel began bombing Iran’s targets over the weekend. The market’s volatility reflects growing uncertainty about the geopolitical situation. Analysts noted that the initial rally in gas prices was driven by fears of a prolonged conflict in the region, which could disrupt global energy supplies. However, the latest developments—particularly U.S. military moves—have shifted investor sentiment, leading to a temporary correction. The conflict has also raised concerns about the security of critical energy infrastructure. Reports indicated that a major liquefied natural gas (LNG) hub in the region suffered damage, though details remain unclear. Meanwhile, the strategic importance of the Strait of Hormuz, a key shipping route for global oil and gas exports, has intensified as tensions escalate. The situation underscores the interconnectedness of global energy markets and regional stability. As the conflict unfolds, energy traders and policymakers are closely monitoring developments to gauge their long-term implications for prices and supply chains.#iran #middle_east #strait_of_hormuz #us_military #liquefied_natural_gas
