Europe Faces High Gas Prices Through 2027, HSBC Says

European natural gas prices will be a whopping 40% higher than previously projected for 2026 and will stay elevated through 2027 as the Iran war and closure of the Strait of Hormuz set off a supply shortfall, according to a report from HSBC Holdings PLC.

Dutch futures prices, Europe’s gas benchmark, are now expected to average $14 per million British thermal units this year and $10 per million Btu in 2027, the London-based investment bank said in its most recent forecast. HSBC’s outlook for 2028 and beyond remains $8.50 per million Btu.