Tensions in the Middle East drove European energy prices higher on Thursday, with concerns over potential supply disruptions escalating following remarks by U.S. President Donald Trump on the Iran conflict.
Brent crude futures surged over 7 percent, climbing above 100 dollars per barrel and approaching 110 dollars, while U.S. benchmark West Texas Intermediate (WTI) crude gained more than 8 percent, surpassing 108 dollars per barrel.
Safe-haven assets showed mixed trends as international gold prices fell over 3 percent to around 4,530 dollars per ounce, ending a four-day streak of gains.
Market analysts said Trump, in a rare prime-time address, gave no clear timeline for ending the conflict and warned that military operations could intensify over the next two to three weeks, increasing geopolitical risk premiums. Iran, meanwhile, denied seeking a ceasefire and reaffirmed control over the Strait of Hormuz.
European natural gas prices also rebounded. Benchmark Dutch TTF futures rose to 49.6 euros (about 53.7 dollars) per megawatt-hour, recovering from a three-week low. Analysts noted that while warmer weather and increased renewable generation eased demand, supply uncertainties amid geopolitical tensions kept prices elevated.
Energy security concerns have resurfaced in Europe, with gas storage levels at around 28 percent. EU officials are urging member states to prepare for prolonged disruptions and may reinstate emergency measures used during the 2022 energy crisis.
Experts warn that continued Middle East tensions could further fuel energy price volatility, impacting inflation, industrial costs, and household energy bills, and posing risks to Europe’s economic recovery.