European Gas Prices Climb for 4th Day

European natural gas extended its rally for a fourth consecutive session, climbing toward €55 per MWh on Thursday, the highest level since March 30, as continued US attacks on Iran heightened fears over LNG flows from the region. Following the reimposition of its naval blockade, the US launched another round of strikes targeting Iran's coastal defenses and missile sites and said it had fired on an empty oil tanker en route to an Iranian port. Tehran responded by warning it could disrupt more regional energy exports, describing the conflict as an "existential war" with the US. The latest escalation comes at a particularly sensitive time for Europe, which is in the middle of refilling its gas facilities ahead of winter. Any renewed disruption to Persian Gulf supplies would force European buyers into more intense and costly competition with Asian importers for available LNG cargoes.

European natural gas rose further to around €54.5 per MWh on Wednesday, hovering at the highest level in more than three months, as mounting tensions in the Middle East fueled concerns over LNG supplies. President Donald Trump warned that the US would target Iranian bridges and power infrastructure next week unless Tehran returns to negotiations. His warning came as US forces carried out strikes on Iran for a fourth consecutive day and resumed a blockade of Iranian ports. Meanwhile, Trump backed away from an earlier threat to impose a 20% security fee on ships transiting the Strait of Hormuz, saying it would instead be replaced by Gulf state investments in the US. Concerns remain focused on Qatar, the region’s leading LNG exporter, as renewed disruptions to exports from the Ras Laffan complex could tighten global supply again and make it more challenging for Europe to rebuild gas inventories ahead of winter.

European natural gas prices climbed to €53.1 per MWh on Tuesday, extending Monday's rally to hit an over three-month high, after President Donald Trump ordered the resumption of a blockade on Iranian ports and demanded a 20% security fee on all cargo passing through the Strait of Hormuz. The blockade is set to take effect at 4:00 p.m. EDT on Tuesday, dashing hopes for a near-term normalization of shipping activity through the waterway. LNG exports from the Middle East had only recently begun to recover, with Qatar ramping up production and shipments following the US-Iran interim agreement in June. However, the renewed hostilities have abruptly halted that recovery, raising concerns over fresh disruptions to LNG exports from the region. Such disruptions could tighten global gas supplies just as Europe is racing to refill storage facilities ahead of the next winter.