economy
March 3, 2026
Middle East war sends natural gas prices soaring, raising growth shock risk for Europe and Asia
Disruption to LNG supplies could dent European growth and harm reindustrialization ambitions.
TL;DR
- Natural gas prices have surged due to fears of disruption in the Middle East, impacting global trade routes.
- European TTF futures and Asian JKM benchmarks have reached multi-year highs.
- Qatar has halted LNG production following drone strikes, reducing near-term global supply.
- Europe and Asia are more exposed to gas price shocks than the U.S. due to reliance on imports.
- Goldman Sachs warns of significant price increases and potential demand responses if the Strait of Hormuz remains disrupted.
- Higher energy prices are expected to negatively impact GDP in most countries, with Norway being an exception.
- Asian countries like India and Singapore are particularly vulnerable due to high reliance on Middle Eastern LNG imports.
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