European natural gas futures climbed more than 6% to above €50 per MWh, rebounding from a three-week low after President Donald Trump’s remarks on Iran dampened expectations of an imminent ceasefire. Trump warned that the US would hit Iran “extremely hard” over the next two to three weeks and said the Strait of Hormuz would reopen “naturally” once the conflict ends, though he offered no specific timetable or details. Iran on Wednesday rejected Trump’s assertion that it had requested a ceasefire.
Traffic through the Strait has been largely paralyzed since fighting erupted in late February, disrupting roughly 20% of global LNG trade. Europe’s gas storage levels have fallen to 28%, increasing the region’s vulnerability as competition with Asia for LNG cargoes intensifies. Analysts have cautioned that energy shortages could emerge within weeks if shipments do not resume. Still, the recent price rally has been partly capped by warmer-than-usual weather and higher output from renewable sources, which are curbing gas demand.
