Gas prices in Europe jumped to a four-month high

Natural gas prices in Europe have reached a four-month high amid the escalation of the conflict in the Middle East.

As reported by Politico, the cause was the escalation around the Strait of Hormuz, through which a significant portion of the world's energy supplies passes.

On Monday, July 20, the Dutch TTF, Europe's main price benchmark, exceeded the 60 euros per megawatt-hour mark for the first time since mid-March. On Tuesday, prices settled at 59 euros. The rise began after the United States carried out its tenth consecutive nightly series of strikes against Iran, and Tehran retaliated by attacking tankers in the Persian Gulf. Analysts warn that the Middle East crisis is no longer a temporary factor and is turning into a structural reality.

"The Strait of Hormuz is no longer considered a reliable route for LNG," stated Montel Energy analyst Tobias Federico.