EU Gas Prices Rise on New US-Iran Attacks

European natural gas prices rose to around €49.4 per MWh on Monday, recouping part of the previous session’s losses as renewed exchanges of attacks between the US and Iran heightened concerns over shipments through the Strait of Hormuz. Over the weekend, Iran expanded its strikes to Qatar and the UAE, while the US carried out additional attacks on Iranian targets. President Donald Trump stated that the strait remains open to commercial shipping, although Iran announced earlier that it had closed the waterway after a vessel using an unauthorized route was hit by a warning shot. Market participants remain on high alert, as any prolonged conflict or direct damage to LNG export infrastructure in the Gulf could complicate Europe's efforts to replenish storage ahead of the winter heating season.

European natural gas prices dropped nearly 3% to around €48.8 per MWh on Friday, pulling back from a one-month high amid reports of continued US-Iran negotiations despite recent military exchanges. A US official reaffirmed Washington's commitment to pursuing a diplomatic resolution with Tehran, easing concerns of a return to full-scale war and once again disrupt supplies from the Persian Gulf. Prices had surged more than 12% over the previous three sessions after the US carried out new strikes on Iranian targets in response to attacks on vessels in the Strait of Hormuz. Iran retaliated by targeting US bases in the region over the past two nights. While President Trump declared that the ceasefire was over, he said he would not prevent talks from continuing. Investors remain focused on energy flows through the strait, which handles around one fifth of global oil and LNG trade, as any renewed disruption could complicate Europe's efforts to replenish inventories ahead of the winter.

European natural gas prices climbed to €50 per MWh on Thursday, the highest level in a month, following a 5.1% increase in the previous session as renewed US and Iran tensions raised concerns over potential disruptions to LNG supplies from the Persian Gulf. The latest escalation came after US forces launched further strikes on Iran, prompting Tehran to respond with missile and drone attacks on American bases across the region. The conflict intensified after Iranian actions against vessels in the Strait of Hormuz, leading Washington to restore sanctions on Iranian oil exports. Markets are increasingly focused on the risk of reduced energy flows through the strategic waterway, which handles around one fifth of global oil and LNG trade. Any prolonged disruption could complicate Europe’s efforts to rebuild gas inventories ahead of the winter demand season, increasing pressure on prices.