European natural gas prices rose nearly 3% to around €43.2 per MWh on Monday, extending the previous session’s gains, as geopolitical tensions flared following President Donald Trump’s renewed threat to strike Iran. Talks between Washington and Tehran in Switzerland began on a tense note after Iranian media reported that Iran had suspended negotiations in response to Trump’s latest warning over Tehran’s support for Hezbollah, although subsequent reports suggested that discussions were still ongoing.
Last week, European gas prices had fallen by more than 13% in the wake of the US–Iran peace deal, but concerns over Europe’s gas inventories persist. EU storage sites are currently 45.56% full, compared with 54.38% at the same point last year and roughly 14% below the five-year average. Net injections in June also remain below typical seasonal levels. These storage shortfalls coincide with forecasts for high temperatures across Europe, which are expected to drive up cooling demand and further support prices.
