European natural gas prices jumped more than 3% to above €82/MWh on Monday, the highest level since December 2022, as tensions in the Middle East persist. Saudi Arabia has closed a critical oil pipeline after drone attacks, while an advance by Yemen’s Houthis fueled concerns over further disruptions to global energy supplies. Meanwhile, a meeting scheduled for later today between Iran and Gulf states to discuss a potential agreement to reopen the Strait of Hormuz was postponed. Europe is struggling to rebuild its gas inventories, with storage levels remaining below historical norms amid curtailed LNG supplies from the Persian Gulf, primarily from Qatar. Although the European Commission recently said there is no immediate risk to gas security this winter, a prolonged disruption to Gulf LNG supplies could tighten the global market further, forcing European buyers to compete more aggressively with Asia, potentially driving prices even higher as heating demand begins to rise.