Europe is bracing for winter with its gas reserves at their lowest levels in nearly a decade, while gas prices have climbed to their highest in almost four years. On Monday, gas prices on the Dutch and British wholesale markets reached their highest intraday levels since late 2022. The Dutch reference contract on the TTF hub, a key European gas pricing benchmark, rose to 83.2 euros per megawatt-hour (MWh) around 10:23 GMT, after briefly hitting 84.50 euros earlier in the day. In the UK, the equivalent contract reached 207.3 pence per therm, its highest since December 2022. Meanwhile, a planned meeting in Oman between Gulf countries and Iran to discuss the safety of shipping through the Strait of Hormuz was postponed. The strait is a vital global energy chokepoint, through which about 20% of the world’s oil and liquefied natural gas (LNG) supply once passed. Since the outbreak of war in the region, the strait has been nearly closed, allowing only a limited number of ships to pass each day. This disruption threatens global energy supplies and adds pressure to already strained markets. Analysts warn that rising tensions in the Middle East, combined with maintenance work in Europe that has affected Norwegian gas supplies and LNG shipments, are likely to keep gas prices on an upward trend. Dzmitry Dauhalevich, an analyst at LSEG, said the market is "dominated by the escalation of risks in the Middle East," which is likely to drive prices higher throughout the week. EU gas reserves are at their lowest levels since 2013, currently standing at about 17 billion cubic meters—20% below the five-year average. This reduced buffer increases the risk of supply shortages and could intensify competition for LNG, leading to greater price volatility this winter. Gergely Molnar, an analyst at the International Energy Agency (IEA), noted that if the Strait of Hormuz remains closed, global LNG supply could drop by over 20 billion cubic meters this winter. With pipeline gas supplies also limited in growth potential, the situation underscores the vulnerability of Europe’s energy security heading into the colder months.