Amsterdam: The Dutch Title Transfer Facility (TTF) natural gas futures index, the main benchmark for gas prices in Europe, climbed to nearly €69.50 per megawatt-hour during trading before easing slightly later in the day.

The sharp rise comes amid growing geopolitical tensions involving the United States and Israel on one side and Iran on the other, which have heightened concerns about the safety of shipping routes in the region. Of particular concern is the Strait of Hormuz, a strategic waterway through which a significant share of the world’s oil and liquefied natural gas (LNG) shipments pass.

Any disruption to traffic through the strait could affect the flow of energy supplies to global markets, prompting traders and energy companies to react quickly to the uncertainty.

Despite the latest spike, current gas prices remain below the record highs seen in 2022, when Europe faced a severe energy crisis following the outbreak of the war in Ukraine. During that period, supply shortages pushed gas futures to much higher levels.

Analysts say the recent surge highlights the growing pressure on global energy markets as geopolitical risks continue to mount. Major economies are already grappling with inflation and rising energy costs, and prolonged instability in the Middle East could intensify competition for liquefied natural gas supplies.