FX.co ★ European Gas Advances as Trump Rejects Iran’s Proposal

European natural gas prices climbed toward €73/MWh on Monday, rebounding after last week’s decline, following President Donald Trump’s rejection of Iran’s seven-day proposal to reopen the Strait of Hormuz on grounds that the terms were unacceptable. The decision renewed fears of prolonged disruptions to energy supplies from the Persian Gulf. Market uncertainty was further heightened by reports that Trump expects to resume bombing Iran after the November midterm elections. Even so, he indicated that he anticipates talks with Tehran will resume this week. Iran, for its part, has reaffirmed its commitment to diplomacy while standing by its existing conditions.

The primary concern for Europe remains relatively low gas inventories ahead of the winter heating season. Storage sites are roughly 70% full—below both the five‑year seasonal average and the EU’s own target levels. According to reports, the European Union has warned of a potential energy price crisis stemming from the conflict and has urged member states to curb demand while continuing to top up storage before winter.