Gas shock in Europe. Prices jump by 11 percent. Hormuz becomes a trap again

Gas prices in Europe jumped by 11% on Monday. The closure of the Strait of Hormuz – a key route for oil and gas supplies to countries around the world – is continuing, brokers inform.

Benchmark gas contracts in Amsterdam (ICE Entawex Dutch TTF) rose to €43.00 per MWh, up 11%, after previously rising 6.2%.

The closure of the Strait of Hormuz – a key route for oil and gas supplies to countries around the world – is being extended.

The strait was closed less than 24 hours after its opening was announced, and Iranian authorities warned ships not to approach it.

Meanwhile, the US Navy detained an Iranian cargo ship that was trying to break the blockade of Iranian ports.

US President Donald Trump announced on Sunday that the US Navy had detained an Iranian cargo ship that was trying to break the blockade of Iranian ports. The American warship allegedly damaged the ship.

Earlier, US Central Command (CENTCOM) said that so far 23 ships had heeded the US Navy's warnings and turned back before reaching the blockade line.

At the same time, Iran maintains its own restrictions on traffic through the Strait of Hormuz, which it has practically blocked since the outbreak of the US-Israeli war with this country on February 28.

Over the weekend, there was information about Iranian shelling of units trying to pass through Hormuz.

Meanwhile, natural gas stocks in EU warehouses amount to 30.2%. compared to the 5-year average at this time of 42.9%.

Analysts indicate that Europe may not be able to replenish its reserves of this fuel if it fails to obtain more liquefied natural gas.

“European countries will have to compete fiercely for gas supplies with Asian countries, which also have to compensate for losses in gas supplies from Qatar,” said Masanori Odaka, vice president of gas market research at Rystad Energy.

The US and Israel launched attacks on Iran in late February, and no LNG cargo has been exported from the Middle East since then, disrupting one-fifth of the world's supply of the fuel.

(PAP Business)

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