(Web Desk) – Energy markets in France and across Europe are facing renewed anxiety as the Middle East conflict disrupts shipping through the Strait of Hormuz, a vital route for liquefied natural gas (LNG) exports. With transport constraints and production cuts by major suppliers, gas prices have spiked, reviving memories of the 2022 energy crisis.
The European benchmark Dutch TTF gas price doubled to over 60 euros per megawatt hour before easing, signaling market volatility. Industries in Germany and elsewhere report production slowdowns as businesses hesitate to purchase energy at elevated prices. Smaller enterprises face financial pressure, while energy-intensive sectors such as chemicals and steel scale back output.
Europe’s gas infrastructure is stronger than in 2022 after investments in LNG terminals, enabling diversification away from pipeline dependency. However, storage levels remain low—only 30 percent full at the end of February compared with 62 percent a year earlier—raising concerns about winter supplies. Analysts warn that prolonged disruption in the Middle East could intensify competition for LNG, especially as major producers including Qatar and the Norway operate near capacity.
The crisis also intersects with European energy policy. The European Union plans to phase out imports of Russian LNG by 2027 to reduce revenue supporting Moscow’s military operations in Ukraine. Energy officials acknowledge that geopolitical uncertainty could reignite debate over supply security.
Meanwhile, global LNG markets face a squeeze. Production halts and shipping restrictions have reduced available cargoes, prompting competition between Asian and European buyers. Experts warn that without new liquefaction capacity coming online in 2027, price volatility may persist.
