European natural gas prices rose again on fears of a worsening conflict in the Middle East. Previously, the price of gas actually dropped.
On the Amsterdam Gas Exchange, the price for November deliveries rose more than 2 percent on Friday morning to 51.25 euros per megawatt hour. On a weekly basis, the price of gas decreased slightly.
But the price is still about 35 percent higher than the level it was before the Hamas attack on Israel on October 7. Last week, gas prices reached their highest level since February.
The price of gas had previously declined due to mild weather forecast in Europe. US efforts to contain the conflict between Israel and the Palestinian armed movement Hamas also contributed.
Fears are growing of US involvement in a broader regional war in the Middle East. For example, the Pentagon said it is seeing more drone attacks on US forces in Iraq and Syria. A US destroyer also intercepted cruise missiles fired by Houthi rebels at Israel in Yemen.
In addition, US President Joe Biden made a direct appeal to the American people to support Israel’s funding and war efforts in Ukraine.
The conflict leads to the closure of a large Israeli gas field
Since the outbreak of war between Israel and Hamas, the border between Israel and Lebanon has also been very volatile. The armed Hezbollah movement from Lebanon has been launching rockets across the border for nearly two weeks, to which Israel responded with counterattacks.
The conflict has so far led to the closure of a major gas field in Israel that supplies gas to Egypt. This may limit Egypt’s exports of liquefied natural gas.
Egypt’s exports of liquefied natural gas to Europe are not large. But the broader conflict and potential Iranian involvement could increase security risks for Qatari LNG ships transiting the Strait of Hormuz. Iranian interference could also pose security risks to international gas pipelines in the region.
“Lifelong zombie fanatic. Hardcore web practitioner. Thinker. Music expert. Unapologetic pop culture scholar.”