Europe’s Gas Crisis Deepens as Hormuz LNG Crunch Drives Prices Higher

AI Summary

European natural gas prices have surged as conflict involving Iran disrupts LNG flows through the Strait of Hormuz, trapping a substantial share of global supply. Higher gas, gasoline, and diesel costs are raising household and industrial bills and adding to inflation, prompting the European Central Bank to raise interest rates.

European natural gas prices have soared dramatically since the war in Iran trapped a fifth of the world’s liquefied natural gas supply behind the Strait of Hormuz.  The high prices are creating a headache for governments amid soaring energy bills for households and spiking energy costs for industry.   The surge in natural gas, gasoline, and diesel prices in recent months is clearly fueling inflation. The European Central Bank (ECB) has raised key interest rates twice since June, with potential for further increases (although…