European natural gas prices rose more than 3% to around €50 per MWh, the highest level in nearly three weeks, after Iran launched missiles at Israel, further dimming hopes for a peaceful resolution of the conflict. The attack followed Israeli strikes in Beirut, and Iran has warned of additional action if Israel expands its military operations in Lebanon or retaliates directly against Iran. Israel has reportedly intercepted all missiles launched in the three Iranian barrages to date.
President Donald Trump stated that the United States was close to reaching a final agreement with Iran but cautioned that any escalation in hostilities could undermine ongoing diplomatic efforts. The absence of clear progress in negotiations, combined with mounting regional tensions, has intensified concerns that disruptions to energy shipments through the Persian Gulf could continue. A prolonged disruption would likely sharpen competition for LNG cargoes, stoking anxiety in Europe as the region races to secure supplies this summer to refill storage sites ahead of the winter heating season.
