European natural gas futures jumped more than 8% to €47.4 per MMBtu on Monday, rebounding from a more than five-week low, after President Trump announced a blockade of the Strait of Hormuz following failed talks with Iran. The move has intensified an already severe global energy supply shock.
Beginning Monday at 14:00 GMT, US forces are set to enforce restrictions on all maritime traffic entering and leaving Iranian ports, though they will not obstruct freedom of navigation for vessels transiting the strait to and from non-Iranian ports. Trump also stated that the US will intercept any ship that has paid Iran a toll for safe passage through the waterway.
Although most Middle Eastern gas exports are typically destined for Asia, a prolonged disruption in the strait would sharpen competition among importing regions, particularly as Europe seeks to rebuild gas inventories ahead of next winter. LNG shipments from the Gulf have already been halted for more than a month, with the world’s largest LNG facility in Qatar offline since early March after being struck by Iranian attacks.
