European Gas Ends August at Its Highest Level for the Month Since 2022

European gas futures closed August at about $840 per thousand cubic meters, up from roughly $709 at the end of July, TASS reported, calling it the highest August level since 2022. Trading Economics recorded the Dutch benchmark price at 69.91 euros per megawatt-hour on August 31. Euronews reported that prices have roughly doubled since the start of the year, attributing the rise to the effective closure of the Strait of Hormuz to liquefied natural gas shipments, extended outages at Norwegian gas fields, and drought that has cut hydroelectric and nuclear power output.

Iran's state news agency IRNA published an assessment of the consequences for Germany under the headline "the sick man of Europe under the blade of the energy crisis," arguing that despite some signs of recovery, Germany faces mounting pressure from rising energy costs this winter. Russian and Iranian state outlets have an interest in emphasizing European energy weakness, but the price data they cite matches independent European reporting.

Current prices remain far below the levels of 2022. What has changed is the trend and the timing. Europe is entering the heating season with gas storage below comfortable levels, and its marginal supply now depends on a waterway under military threat.