European Gas Prices Set to Jump

European natural gas futures surged more than 9% to €47.8 per MMBtu on Monday, rebounding from an over five-week low as President Trump announced a blockade of the Strait of Hormuz after failed talks with Iran, deepening a global energy supply shock. US forces are set to begin enforcing restrictions on all maritime traffic entering and leaving Iranian ports on Monday at 1400 GMT but will not impede freedom of navigation for vessels transiting the strait to and from non-Iranian ports. Trump also said the US will interdict any ship that has paid a toll to Iran for safe passage through the waterway. While most Middle Eastern gas exports typically head to Asia, prolonged disruption in the strait would heighten competition among importing regions, especially as Europe needs to refill storage before next winter. LNG shipments from the Gulf have been halted in over a month, with the world’s largest LNG facility in Qatar remaining offline since early March after being hit by Iranian strikes.

Natural Gas EU increased 11.78% to 48.78 EUR/MWh

European natural gas futures are expected to jump on Monday as President Donald Trump’s announcement of a naval blockade of the Strait of Hormuz heightened concerns over a further global supply squeeze. The US military said it will begin blockading all Iranian ports at 1400 GMT on Monday, following failed weekend negotiations with Iran aimed at ending the six-week-long conflict. Trump also said the US will intercept vessels that have paid tolls to Iran for safe passage through the strait. Although most Middle Eastern gas supplies are typically directed toward Asia, any prolonged disruption in the Strait would intensify competition among importers, especially as Europe enters a critical period of replenishing gas storage ahead of the winter season. Tensions have already halted LNG shipments through the waterway for over a month, including the shutdown of the world’s largest LNG facility in Qatar.