Uniper Warns Gas Prices to Stay High Until Hormuz Reopens
Uniper's CEO says gas prices will remain elevated at €50–60 per MWh until the Strait of Hormuz reopens, urging a solution.
German utility Uniper has cautioned that natural gas prices are likely to remain elevated, hovering around €50 to €60 per megawatt hour, for as long as the Strait of Hormuz stays closed. The warning came from CEO Michael Lewis on Tuesday, following the company's release of its first-half financial results.
Lewis described the sustained high prices as detrimental to customers, industry, and overall economic prosperity. "These high prices are bad for our customers, bad for the industry and bad for our wealth. That is why we need a solution," he told journalists.
The Strait of Hormuz is a critical chokepoint for the global transport of liquefied natural gas (LNG). Efforts to reopen the waterway have faced complications, with recent diplomatic exchanges between the United States and Iran adding further uncertainty. On Monday, U.S. President Donald Trump responded to Iran's conditions for a peace deal with his own set of demands, complicating negotiations.
Uniper's outlook underscores the broader economic strain caused by the ongoing closure, as markets await a resolution that would allow LNG shipments to resume normal flow.