Gas price climbs to highest level since end of 2022 – Iran war pushes up heating costs

TVS News KI redaktionell betreut präsentiert Gas price climbs to highest level since end of 2022 – Iran war pushes up heating costs.

The gas price in Europe is at its highest level since the end of 2022. According to Handelsblatt, the trigger is the Iran conflict – and a look at gas storage facilities doesn't make things any better. Anyone hoping for lower heating costs in the coming months will need plenty of patience.

That's because Europe's gas storage facilities are, according to Handelsblatt, significantly emptier than the average of previous years. This buffer is precisely what's missing now, while prices are already under pressure.

Why the Iran conflict is hitting the gas price

Europe obtains a growing share of its gas as LNG – liquefied natural gas shipped by tanker. A significant portion of these supply routes passes through or near the Persian Gulf. When it becomes unsafe, it immediately feeds through into the world market price. In other words: the geopolitical situation in the Gulf writes itself directly into your next heating bill.

Storage as a missing buffer

Over the summer, EU states normally fill up their gas reserves to get through the heating season. This year, the fill level is, according to Handelsblatt, significantly thinner than the average of prior years. Without this buffer, price spikes in winter can no longer be absorbed as easily – every cold snap then bites harder.

Asia bids up the price – Europe gets less

Europe now faces direct competition from Asian buyers for LNG. When demand rises there, part of the available cargoes heads that way. Handelsblatt sees this as an additional burden on the already strained European market.

What this means for you

According to Handelsblatt, no short-term relief is in sight. As long as the Iran conflict strains supply chains and Asia keeps bidding for cargoes, upward pressure on the gas price will persist – along with the burden on households in Europe.