FX.co ★ European Natural Gas Prices Rise Further

European natural gas prices climbed more than 2% to €67.5/MWh, the highest level since January 2023, as investors awaited details of a new US plan to further isolate Iran economically, raising the risk of additional disruptions to Middle Eastern energy supplies. US Treasury Secretary Bessent is scheduled to hold a press conference later today and has threatened to impose “the toughest sanctions in history” on Iran. This comes on the heels of President Trump’s warning last week that sanctions would also target countries that continue trading with Tehran.

Iran has dismissed the US threats as a sign of desperation, insisting that the new measures will not succeed in undermining Tehran. In Europe, however, concerns over gas inventories are mounting. Persistent tensions have kept the Strait of Hormuz largely closed, delaying Qatari LNG shipments to Europe. Combined with a surge in cooling demand driven by heatwaves, these disruptions have slowed the pace of storage replenishment, leaving European gas reserves under increasing strain ahead of the winter season.