Prices spiked violently on the news. European benchmark TTF gas jumped more than 11% on Monday August 10 alone, reaching its highest level in over two weeks . UK wholesale prices followed, climbing to around 148.75p per therm by late July and rising further into mid-August . ING strategists reported TTF moved back above €60/MWh on August 11 as hopes for a US-Iran deal faded .

The underlying supply crisis: stalled Qatari LNG

Qatar's LNG exports are effectively frozen. The Strait of Hormuz has been largely impassable for LNG tankers since the US-Iran war began five months ago, and no LNG tankers have transited the strait since July 16, 2026 . QatarEnergy, one of the world's largest LNG exporters, extended force majeure on deliveries to European and Asian buyers through at least September 30 (and reportedly into mid-October), cancelling or deferring shipments to multiple European importers . Kpler forecast Qatar's 2026 LNG exports could fall below 27 million metric tons versus roughly 80 million tons in 2025 — a collapse of about two-thirds .

The supply gap cannot be easily filled. Europe and Asia are now competing fiercely for a shrunken pool of spot LNG cargoes, with Asian spot LNG hitting four-month highs in late July on fears of prolonged disruption . Norwegian pipeline flows have also been squeezed by an unplanned outage at the Åsgard field, cutting exports by around 6 mcm/day .

Record-low storage: far behind the EU winter target

EU storage is at a historic low for the time of year. By early-to-mid August 2026, EU gas storage was just under 57% of capacity — far below the five-year average of roughly 71% for this date . The normal seasonal build-up of inventories ahead of winter has been crippled by the inability to import sufficient LNG .

The EU's 75% winter storage target is at serious risk. With the November 1 deadline approaching, the current trajectory makes it very difficult to reach the mandated 75% fill level, let alone the more comfortable 90% target. Reuters reports there is "little economic incentive to store gas now" at these elevated prices, meaning the shortfall may persist through the autumn .

Heatwave-driven demand: gas-fired power generation surging

A severe summer heatwave is compounding the problem. Europe has been hit by "yet another heatwave" in mid-August, driving high demand for air conditioning and increasing the load on gas-fired power plants . The Financial Times reports that demand for gas has been pushed up by the combination of heatwave-driven electricity consumption and a solar eclipse on August 12 that reduced solar generation, forcing greater reliance on gas .

This creates a destructive feedback loop: high power demand depletes gas storage further in summer, leaving even less cushion for winter heating demand.

Why the market is so vulnerable heading into the 2026/27 heating season

All five factors are compounding each other:

• No Hormuz reopening in sight. Even if a framework deal emerges, Iran has conditioned reopening on US concessions that are far from guaranteed, and any resumed flows would take weeks to materialise .
• Qatar force majeure could extend through winter. The force majeure has already been rolled forward repeatedly, and there is no clear timeline for resumption .
• Storage is at crisis levels. Starting winter with sub-60% fills would leave Europe acutely exposed to any cold snap or additional supply disruption .
• Demand-side pressure is rising, not falling. Heatwaves will persist into early autumn, and winter heating demand is additive on top of an already-depleted base.
• Price itself is a risk. Sky-high spot prices discourage commercial storage injections, meaning the market may not self-correct through price signals alone .

ING strategists summed it up: each day without Persian Gulf LNG flows and falling European storage levels "increases vulnerability to a sharp price spike this winter" .

Prices spiked violently on the news. European benchmark TTF gas jumped more than 11% on Monday August 10 alone, reaching its highest level in over two weeks . UK wholesale prices followed, climbing to around 148.75p per therm by late July and rising further into mid-August . ING strategists reported TTF moved back above €60/MWh on August 11 as hopes for a US-Iran deal faded .

The underlying supply crisis: stalled Qatari LNG

Qatar's LNG exports are effectively frozen. The Strait of Hormuz has been largely impassable for LNG tankers since the US-Iran war began five months ago, and no LNG tankers have transited the strait since July 16, 2026 . QatarEnergy, one of the world's largest LNG exporters, extended force majeure on deliveries to European and Asian buyers through at least September 30 (and reportedly into mid-October), cancelling or deferring shipments to multiple European importers . Kpler forecast Qatar's 2026 LNG exports could fall below 27 million metric tons versus roughly 80 million tons in 2025 — a collapse of about two-thirds .

The supply gap cannot be easily filled. Europe and Asia are now competing fiercely for a shrunken pool of spot LNG cargoes, with Asian spot LNG hitting four-month highs in late July on fears of prolonged disruption . Norwegian pipeline flows have also been squeezed by an unplanned outage at the Åsgard field, cutting exports by around 6 mcm/day .

Record-low storage: far behind the EU winter target

EU storage is at a historic low for the time of year. By early-to-mid August 2026, EU gas storage was just under 57% of capacity — far below the five-year average of roughly 71% for this date . The normal seasonal build-up of inventories ahead of winter has been crippled by the inability to import sufficient LNG .

The EU's 75% winter storage target is at serious risk. With the November 1 deadline approaching, the current trajectory makes it very difficult to reach the mandated 75% fill level, let alone the more comfortable 90% target. Reuters reports there is "little economic incentive to store gas now" at these elevated prices, meaning the shortfall may persist through the autumn .

Heatwave-driven demand: gas-fired power generation surging

A severe summer heatwave is compounding the problem. Europe has been hit by "yet another heatwave" in mid-August, driving high demand for air conditioning and increasing the load on gas-fired power plants . The Financial Times reports that demand for gas has been pushed up by the combination of heatwave-driven electricity consumption and a solar eclipse on August 12 that reduced solar generation, forcing greater reliance on gas .

This creates a destructive feedback loop: high power demand depletes gas storage further in summer, leaving even less cushion for winter heating demand.

Why the market is so vulnerable heading into the 2026/27 heating season

All five factors are compounding each other:

• No Hormuz reopening in sight. Even if a framework deal emerges, Iran has conditioned reopening on US concessions that are far from guaranteed, and any resumed flows would take weeks to materialise .
• Qatar force majeure could extend through winter. The force majeure has already been rolled forward repeatedly, and there is no clear timeline for resumption .
• Storage is at crisis levels. Starting winter with sub-60% fills would leave Europe acutely exposed to any cold snap or additional supply disruption .
• Demand-side pressure is rising, not falling. Heatwaves will persist into early autumn, and winter heating demand is additive on top of an already-depleted base.
• Price itself is a risk. Sky-high spot prices discourage commercial storage injections, meaning the market may not self-correct through price signals alone .

ING strategists summed it up: each day without Persian Gulf LNG flows and falling European storage levels "increases vulnerability to a sharp price spike this winter" .