European Gas Advances as Hormuz Remains Shut

European natural gas prices rose above €64 per MWh on Thursday as restrictions on shipping through the Strait of Hormuz continued to raise concerns over global LNG supplies. President Donald Trump vowed on Wednesday to impose “tremendous punishment” on countries that help or do business with Iran, ramping up economic pressure on Tehran to reopen the critical waterway. His threats came a day after he said there were no ongoing talks and that the naval blockade of Iran remained in force, while Tehran maintained that the waterway remained closed. The blockade has halted Qatari LNG deliveries, forcing European utilities to compete aggressively for available cargoes in an already tight global market. Reduced LNG inflows, combined with heatwave-driven cooling demand, have slowed Europe’s seasonal gas storage injections. This has amplified concerns that Europe could enter the winter heating season with insufficient reserves, keeping upward pressure on gas prices.

EU Gas increased to 64.55 EUR/MWh, the highest since March 2026. Over the past 4 weeks, Natural Gas EU gained 9.75%, and in the last 12 months, it increased 102.16%.

European natural gas prices held onto recent gains at around €63.7 per MWh on Wednesday as concerns over a potential winter supply crunch intensified amid a lack of progress on a deal to reopen the Strait of Hormuz. President Donald Trump said that no talks with Iran are currently taking place or scheduled and that the US naval blockade remains in full force. He added that the strait is open and operating, in contrast to Iran’s position that the key waterway will remain closed until Washington meets its conditions. Traffic through the waterway has fallen to a standstill, stranding Qatari LNG tankers and delaying deliveries to Europe. The reduced inflow, combined with summer heatwaves that have boosted demand for gas-fired power generation for cooling, is slowing the seasonal buildup of gas inventories. As a result, traders are increasingly concerned that Europe could enter the winter heating season with insufficient reserves, keeping upward pressure on gas prices.