European natural gas prices reached their highest level since early 2023 as conflict between the US and Iran disrupted LNG shipments through the Strait of Hormuz, prompting the International Energy Agency to recommend governments use strategic reserves and flexible contracts to prepare for future shortages. Production damage at Qatar's LNG facilities and reduced storage incentives have compounded supply concerns, with Goldman Sachs estimating prices may need to exceed €100/MWh by December 2026 to attract sufficient LNG to Europe.