European natural gas futures fell 5% to around €45 per megawatt-hour, their lowest level in more than two weeks, after Iranian state television reported that Tehran plans to restore commercial shipping through the Strait of Hormuz to pre-war levels within a month. The announcement has raised hopes that the US and Iran are close to an agreement to fully reopen this crucial energy corridor.
The Strait of Hormuz is vital for global LNG shipments, and any prolonged disruption risks intensifying competition for already limited supplies, complicating Europe’s efforts to rebuild gas inventories ahead of the winter heating season. Currently, European storage facilities are about 38% full, well below the five-year average of just over 50% for this point in the year, and injection rates remain slower than usual.
At the same time, Europe is confronting its first major heat wave of the season, with temperatures expected to reach record highs in cities including London, Paris, and Madrid through the remainder of the week, adding further pressure to energy demand.
