European gas hits highest since December 2022 on Yemen tanker attack

European gas prices reached their highest level since December 2022. Reports of an attack on a liquefied natural gas tanker near Yemen drove the move. The incident has intensified security concerns in the Middle East, threatening global energy supplies and critical shipping routes.

Benchmark Dutch gas futures rose by as much as 2%. This extends a rally from the previous week as traders assess the risk of tighter supplies ahead of winter. The price surge comes at a vulnerable time for Europe's energy outlook. Gas inventories are just over 74% full. That is significantly below the five-year seasonal average of 89%.

Mild weather has supported storage refilling. However, analysts warn that prolonged supply disruptions and rising winter demand could push prices even higher. European gas prices have already more than doubled from pre-conflict levels. This increase is placing growing pressure on businesses, consumers, and the wider economy. Further price rises are possible if Middle Eastern LNG exports remain constrained and competition for global gas supplies intensifies.