EU natural gas prices surge to 3-year high amid Middle East tensions

The price of natural gas in the European Union (EU) has surged by as much as 60 percent over the past two days, with futures breaking through 56 euros per megawatt hour (MWh) to hit a three-year high on Wednesday, driven by the shutdown of a liquefied natural gas (LNG) facility in Qatar and the closure of the Strait of Hormuz amid heightened Middle East tensions.

Qatar's state-run energy firm QatarEnergy on Wednesday announced force majeure following attacks on two of its main facilities during the ongoing conflict between Iran and a U.S.-Israeli coalition.

"Further to the announcement by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy has declared Force Majeure to its affected buyers," the company said in a statement.

In a statement on Sunday, Qatar's Ministry of Defense said two drones had struck energy facilities in the country. Later that day, QatarEnergy announced it had halted LNG production over Iranian attacks.

Meanwhile, the closure of the Strait of Hormuz has choked off shipments from other major producers in the region.

These ongoing disruptions have added fresh pressure to Europe's already stretched winter gas reserves, raising concerns about tight supply heading into the summer months.

EU natural gas prices surge to 3-year high amid Middle East tensions

No damage has been found at facilities containing nuclear material in Iran, the International Atomic Energy Agency (IAEA) said on Wednesday, based on analysis of the latest available satellite imagery.

The imagery indicated no radiological release risk at the time, the IAEA said in a social media post.

Damage can be seen at two buildings near the Isfahan nuclear site, while at the Natanz site, no additional impact was detected after the previously reported damage at its entrances, the agency said. No impacts were detected at other nuclear sites, including Bushehr Nuclear Power Plant.

"IAEA remains in constant contact with national nuclear safety regulators in the Middle East. So far, no elevation of radiation detected," the IAEA said, adding that the nuclear power plant in the United Arab Emirates and research reactors in Jordan and Syria continue to operate normally.

In the social media post, IAEA Director General Rafael Grossi stressed the "paramount importance" of maintaining regional nuclear safety and security during the military conflict.

The United States and Israel on Saturday launched "major combat operations" against Iran. On Tuesday, the IAEA said that some recent damage had been confirmed at Iran's Natanz Fuel Enrichment Plant.

IAEA sees no radiological release risk in Iran amid ongoing conflict