European natural gas traders are increasingly hedging against a potential spike in prices for the upcoming winter, influenced by ongoing disruptions in supply due to the Middle East conflict. Recent options trading indicates that prices could soar to €100 per megawatt-hour, more than double the current rate of approximately €47. The conflict has effectively closed the Strait of Hormuz, a critical route for global energy supplies, impacting about 20% of the world’s liquefied natural gas supply. This disruption has led to a 40% increase in benchmark gas prices since the war began. Currently, European storage facilities are only 34% full, significantly below the five-year average of 45% for this time of year, raising concerns about replenishing inventories before winter. Traders are responding by increasing their options positions, particularly in call spreads, to safeguard against a potential price surge during the winter months.