Commission President Ursula von der Leyen speaking at a European Parliament plenary session on the situation in the Middle East
The spectre of a European gas price cap returns
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
The EU is once more considering a cap on gas prices in response to the Hormuz blockade, with analysts warning the measure would prove harmful, as it could prevent the bloc from attracting additional LNG cargoes as it faces fierce competition from buyers in Asia. Iran’s blockade of Hormuz and Qatar’s subsequent force majeure on deliveries from its production base at Ras Laffan have triggered a spike in European gas prices, with the TTF front-month contract averaging €56/MWh ($64.5/MWh) on 9 March. It subsequently subsided, with trading closing at €50.6/MWh on 12 March. In contrast, the contract had been trading in the low €30s before the US and Israel launching strikes against Iran. With Euro
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