European gas prices experienced a significant uptick, soaring by 20% over the past week amid escalating supply challenges and intensifying geopolitical uncertainties. The energy market has been rattled by a combination of unplanned outages in key supply pipelines, reduced output from major producers, and heightened tensions between influential gas-exporting nations. Traders and consumers alike are facing the fallout as inventory levels dwindle ahead of the upcoming winter season, further tightening the market. Market analysts describe this scenario as a “perfect storm,” with factors converging to push prices to their highest levels in recent years.

Several key drivers are contributing to this upward trend:

  • Reduced pipeline flows: Technical difficulties and maintenance issues have cut supplies from critical transit…