War in Israel, along with the prospect of continued labor strikes at LNG terminals in Australia and a leaking pipeline that connects Finland and Estonia, all combined Monday to send European gas benchmarks soaring.

The prompt Dutch Title Transfer Facility finished 15% higher Monday to close near $14/MMBtu. Asian prices are also poised to climb higher even though neither region depends on Israeli gas exports.

Israel’s decision to declare war against the Islamist militant group Hamas following an unprecedented attack by the group in Israeli territory jolted energy markets and sent oil higher as the specter of broader tensions in the Middle East looms.

“Uncertainty is rising due to possible new sanctions on Iran, which could tighten global oil production,” said Schneider...