Oil and European gas prices surge toward multi-year highs on Middle East tensions and low inventories

Oil prices are approaching $100 per barrel as Houthi attacks on shipping and U.S. strikes on Iranian tankers escalate Middle East tensions, while European natural gas prices have jumped to €75/MWh, the highest since 2022, due to low inventories and a halt in Qatari LNG imports since April. The combination of supply-side risks and storage concerns signals a potential energy supply crunch heading into winter, with implications for inflation and global growth.