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European gas prices pulled back in June 2026 because markets began to price in a possible reopening of the Strait of Hormuz and a recovery in Gulf LNG deliveries—not because supply had returned to normal. The International Energy Agency (IEA) said carrier traffic was rising after a U.S.–Iran interim agreement announced in mid-June, but remained only a fraction of pre-conflict levels. On 3 September, the European Commission said Qatari LNG production was still shut down.

Why did European gas prices pull back?

The pullback reflected a change in expectations. The conflict had disrupted LNG flows through the Strait of Hormuz, a route that had carried almost 20% of global LNG supply, and the IEA said the disruption caused strong price volatility. The interim agreement announced in mid-June offered a framework for reopening the strait. That prospect eased some concern about future supply and put downward pressure on European and Asian prices, according to the IEA.

The price move was limited and should not be confused with a return to pre-conflict conditions. The IEA reported that LNG carrier transit was increasing after the announcement, but was still only a fraction of its earlier level.

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What do the dated price figures show?

Prices softened, but remained elevated in the second quarter of 2026. The IEA put the average TTF price for Q2 at nearly USD 16 per million British thermal units (MBtu), 32% above the same quarter a year earlier. Separately, TTF month-ahead prices fell 6% between 15 and 26 June after the interim agreement was announced.

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These figures describe different periods and measures: the first is a quarterly average, while the second is a short-term change following the announcement. Neither is an October 3 settlement or a live quote. The available figures do not establish the TTF price on 3 October 2026.

Has Middle East gas supply recovered?

Not fully, based on the latest dated update in the available evidence. On 3 September 2026, the European Commission reported that Qatari LNG production remained shut down and that the Middle East was still unstable. The IEA’s reported rise in carrier transit therefore signalled improved shipping activity, not proof that Gulf production, loading and exports had normalized.

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The IEA’s outlook also depended on assumptions rather than confirmed outcomes: it assumed a full reopening of the Strait in Q3 2026, the return of operations at undamaged regional facilities by early Q4, and a gradual increase in Qatari and UAE LNG deliveries from July through October. Those assumptions should not be read as verification that each milestone occurred.

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How exposed is Europe to Qatar and Gulf disruption?

Qatar was an important but not dominant direct source for the EU during winter 2025/26. The Agency for the Cooperation of Energy Regulators (ACER) reported that Qatar supplied 7% of EU LNG in that period, equivalent to 4% of EU natural gas imports.

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Direct import shares do not capture the full price exposure. LNG cargoes can compete for buyers across regions, and ACER identifies competition with Asia as a price risk for Europe. The European Commission says TTF closely tracks Asia’s JKM benchmark through arbitrage: when Asian buyers bid more strongly, flexible cargoes may be drawn toward that market, affecting prices in Europe even when Europe’s direct Qatari import share is limited. The TTF–JKM spread is therefore one indicator of changing regional competition, not a guarantee of where any particular cargo will go.

Why can prices be volatile without an immediate EU supply risk?

Wholesale prices and the ability to meet immediate demand are related but distinct. The Commission’s 3 September assessment found no immediate EU security-of-supply risk, even though it described the Middle East as unstable and Qatari production as still shut down. It also noted storage was low relative to prior years. Storage, demand and import capacity help determine whether the system can meet near-term needs; expectations about global LNG availability and competition influence the price buyers may have to pay.

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As the Commission’s Directorate-General for Energy put it on 3 September 2026: “Geopolitical uncertainty continues to drive significant price volatility.”

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How should the Commission’s EUR 80/MWh figure be read?

The European Commission’s Spring 2026 downside scenario described a possible late-2026 gas price of EUR 80 per megawatt-hour (MWh) under prolonged disruption. This was a conditional scenario, not a live market quote or a baseline forecast that the price would reach that level. Its relevance depends on whether disruption persists and on other market conditions.

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