European gas prices reach four-year high on winter supply fears

European natural gas prices climbed to a four-year high on Tuesday amid below-average storage levels and growing market anxiety over winter supplies. Natural gas futures prices at the Dutch Title Transfer Facility (TTF), the European benchmark, rose more than two percent on the day to cross 86 euros per megawatt-hour, a sharp increase from around 32 euros per megawatt-hour recorded in February.

The price surge comes amid geopolitical tensions surrounding Iran in late February and the disruption of shipping through the Strait of Hormuz. Compounding the strain, European storage facilities are currently filled to just 73.75 percent of capacity, significantly below historical averages for this time of year.