European gas prices climb as LNG supply risks rattle markets

Around 20 per cent of the world's LNG typically transits through the Strait of Hormuz but shipping through the narrow passage has come to a near-standstill since the US and Israel began strikes on Iran on February 28.

The disruption has driven Qatar, one of the world's largest liquefied natural gas producers, to declare force majeure, tightening supplies.

"Europe and Asia are both highly exposed to LNG logistics, and with Qatar unable to load cargoes under force majeure, the global LNG balance has tightened," analysts at Rabobank said.

Europe's gas stores are currently 29.3 per cent full, data from Gas Infrastructure Europe showed. The elevated prices will raise the cost of refilling inventories.