TTF Prices Extend Gains

European natural gas futures climbed toward €45 per MWh on Monday, extending gains from the previous session, as the US and Iran failed to reach agreement on a US-drafted peace proposal, leaving the Strait of Hormuz largely closed. President Donald Trump rejected Iran’s response to the proposal, calling it “totally unacceptable” and accusing Tehran of playing games. This was after reports that Iran had proposed transferring part of its stockpile of highly enriched uranium to a third country and refused to dismantle its nuclear facilities. The near-closure of the strait has choked off around one-fifth of global LNG supply, with the route currently blocked by both sides. While most Middle East supply goes to Asia, the disruption has tightened global supply and intensified competition for cargoes. The situation is critical for Europe, which needs to refill storage ahead of next winter.

European natural gas futures rose above €44 per MWh on Friday, rebounding after three straight sessions of losses, as renewed fighting between the US and Iran raised uncertainty over the prospects for a peace deal. The US said its forces struck Iranian military facilities on Thursday in response to attacks on guided-missile destroyers transiting the Strait of Hormuz. Meanwhile, markets found some relief after President Donald Trump said the ceasefire remains in place despite the strikes, while Iranian TV reported that the situation returned to normal. The latest clashes came as Washington seeks to de-escalate tensions while awaiting Iran’s response to a proposal to reopen the key waterway. The near-closure of the strait has choked off around one-fifth of global LNG supply, with the route currently blocked by both sides. While most Middle East supply goes to Asia, the disruption has tightened global supply, fueling concerns in Europe as it works to refill storage ahead of next winter.

European natural gas futures fell below €44 per MWh on Thursday, extending losses from the previous session, as markets weighed prospects of a US-Iran deal that could lead to the gradual reopening of the Strait of Hormuz. Washington and Tehran are reportedly moving closer to an agreement on a one page of memorandum to end their conflict, with Iran expected to respond in the coming days. The latest US proposal came after President Trump briefly suspended an initiative to provide safe passage for vessels through the strait. The effective closure of the vital waterway has choked off around one-fifth of global LNG supply, with the route currently facing a dual blockade from both sides. While most gas from the Persian Gulf are directed toward Asia, the disruption has tightened global supply, raising concerns in Europe as the region needs to replenish inventories before next winter.