Tuesday’s prices represent a 50 percent increase from last month. They also point to concerns that gas supplies will be further squeezed by a combination of depleted European reserves and high summer temperatures in Asia, which analysts expect will increase demand. air conditioner.
The latest price hike has fueled concerns that unrest in the Middle East will be priced in as a permanent feature of energy markets – particularly for Washington and Tehran threatening tariffs or “service fees” on maritime transport and the announcement by the Iran-backed Houthi militia group in Yemen that it will block the Bab al-Mandab Strait, another important waterway in the region.
“The seemingly random nature of the continued opening and closing of the Strait of Hormuz means that this is no longer a reliable way to supply the world with LNG,” said Tobias Federico, chief analyst at Montel Energy.
“The recent rise in TTF shows that geopolitical risk is becoming a structural reality for energy markets,” said Alice Acuña, Moeve EVP Trading & Commercial Integration for Madrid-based energy company Moeve.
