European Gas Prices Surge as U.S. Imposes Naval Blockade on Iran
European gas prices surged following escalating tensions between the United States and Iran. The increase was triggered by the U.S. announcement of a naval blockade on vessels entering or leaving Iranian ports after unsuccessful ceasefire negotiations. On the Dutch gas market, prices jumped about 12% to nearly 49 euros per megawatt-hour for May delivery, with an overnight spike reaching 51 euros, up almost 18%. Brent crude oil prices rose more than 7% to above 102 dollars per barrel, while U.S. WTI crude increased over 8% to just under 105 dollars. The U.S. president declared the blockade effective immediately, with military enforcement confirmed from 16:00 Belgian time. The blockade excludes ships passing through the Strait of Hormuz to non-Iranian destinations but targets all vessels docking at Iranian ports. The Strait of Hormuz, a key chokepoint for global energy supplies, transports roughly one-fifth of the world's oil consumption. Uncertainty about blockade enforcement and navigation routes has added to market volatility.
