Geopolitical tensions between Russia and Ukraine are once again roiling global energy markets, with rising prices raising concerns over the potential economic impact on U.S. consumer bills.
On Thursday, Russia launched an intercontinental ballistic missile (ICBM) from the Astrakhan region during an overnight strike on Dnipro, Ukraine, Reuters reported, citing the Ukrainian air force.
As reported by Reuters, security experts said this marks the first use of an ICBM in a military conflict. The missiles are designed for nuclear warhead delivery. There is no indication the missile was nuclear-armed, Reuters said.
Western officials disagree with Ukraine's assessment, The New York Times said in a report, and say the missile was likely of intermediate range. The Times said the officials spoke anonymously in order to discuss a private Western intelligence assessment.
The Ukrainian air force said the missile was fired from over 435 miles away, targeting the central-eastern city of Dnipro.
While the attack caused injuries to two people, the extent of the damage remains unclear. Ukrainian president Volodymyr Zelenskyy condemned the move, commenting on X: "Our insane neighbour has once again revealed its true nature."
The move adds to escalating tensions, coming on the heels of Ukraine firing two Western-made missiles at Russia on Tuesday and Wednesday, after receiving approval from the White House to target Russian territory.
US Natural Gas Prices Spike, Eye Best Monthly Performance Since July 2022
In the wake of these heightened external geopolitical risks, U.S. natural gas prices surged.
Futures tied to the Henry Hub benchmark - as tracked by the United States Natural Gas Fund LP (NYSE: UNG) - jumped more than 6% on Thursday, reaching $3.40 per million British thermal units - the highest level since early November 2023.
The commodity is now up 50% for November, positioning itself for its strongest monthly rally since July 2022.
Natural gas demand in the U.S. has been driven by plummeting temperatures, intensifying the need for heating.
The National Oceanic and Atmospheric Administration warned on Thursday of the season's first significant snowfall in the central and northern Appalachians, with heavy accumulation expected through Friday.
"Higher elevations will have the best chance of significant accumulations, however even the lower elevations of central and northern Pennsylvania and south central New York will likely see some accumulation of snow," the NOAA wrote in a post on X.
The U.S. Energy Information Administration is set to release weekly natural gas inventory change later Thursday.
Europe's natural gas market is grappling with fresh supply concerns as winter approaches after Austria's OMV Group disclosed over the weekend that it will no longer receive volumes from its long-term contract with Russia's Gazprom.
WTI Oil Prices Climb, Gold Eyes 4th Straight Positive Day
The ripple effects of escalating geopolitical tensions also extended to crude oil markets.
West Texas Intermediate crude futures, tracked by the United States Oil Fund (NYSE: USO), climbed 2.2% on Thursday morning, trading at $70 per barrel - the highest level since Nov. 11.
Gold continued to attract demand for safe-haven assets, with the precious metal rising 0.6% to $2,665 per ounce, eyeing the fourth straight session of gains.
Bitcoin rose 3%, hitting a new peak of $98,367.