The price of natural gas in Europe rose above 80 euros per megawatt-hour for the first time in more than three years. Continued high prices could further boost inflation and put Europe at risk of a wider crisis. Benchmark natural gas futures once rose 6.8% to 80.98 euros per megawatt hour, the highest level since January 2023. Although prices are still far below their peak during the energy crisis, they have more than doubled since the outbreak of the Middle East war. As demand is expected to rise in winter, the risk of gas prices being squeezed further increases, and may evolve into a broader economic issue.

The price of natural gas in Europe rose above 80 euros per megawatt-hour for the first time in more than three years. Continued high prices could further boost inflation and put Europe at risk of a wider crisis. Benchmark natural gas futures once rose 6.8% to 80.98 euros per megawatt hour, the highest level since January 2023. Although prices are still far below their peak during the energy crisis, they have more than doubled since the outbreak of the Middle East war. As demand is expected to rise in winter, the risk of gas prices being squeezed further increases, and may evolve into a broader economic issue.