Link Securities | Bloomberg reported a rebound in European gas prices, with Dutch market futures rising 6% amid tensions in the Middle East. There are concerns that the regional war will widen from the Israeli-Palestinian conflict in Gaza.
The US carried out some strikes on Iraqi targets and new attacks by Houthi militias were reported in the Red Sea. Iranian media reported last weekend that an Iranian commander was killed by an Israeli strike in Syria. Meanwhile, Israeli Defence Minister Gallant said his country is facing attacks from seven fronts and warned of an increased risk of regional conflict.
Since the conflict erupted in October, there has been no major impact on supply, although LNG carriers have had to divert their routes to avoid attacks in the Red Sea. Despite the increase in gas prices, they are still 50% lower than at the beginning of the year. High inventories and lower demand due to a milder winter have limited commodity price increases.
