European Gas Futures Jump 3% as Trump's Iran Strike Deadline Nears
oilprice.com • • business
Key Points:
- European natural gas futures rose sharply, with the Dutch TTF May 2026 contract opening 3% higher at just above $58 per MWh, amid escalating tensions involving Iran and threats from U.S. President Donald Trump.
- The ongoing conflict in the Middle East and closure of the Strait of Hormuz, which traps about 20% of global LNG flows, have caused European gas prices to surge approximately 55% since late February.
- Europe faces a challenging gas refill season due to depleted storage levels and rising spot LNG prices, compounded by Asia's higher demand and control over 85% of LNG supply through the Strait of Hormuz.
- No LNG cargo has passed through the Strait of Hormuz for over a month, with recent attempts by Qatari LNG vessels to exit the strait being aborted, highlighting supply disruptions.
- Further escalation, including potential U.S. strikes on Iranian infrastructure and Iranian retaliation, could cause even greater spikes in gas prices and prolong the closure of the Strait of Hormuz.
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