FX.co ★ European Gas Prices Advance

European natural gas prices climbed to €41.7 per MWh on Monday, building on Friday’s advance as the latest escalation in the Middle East revived supply concerns. Shipping traffic through the Strait of Hormuz has slowed after new attacks on vessels since Thursday, including one on a Qatar-linked oil tanker. The incident triggered retaliatory strikes by both the US and Iran, marking the most serious flare-up since the two sides signed an interim peace agreement. Nonetheless, Axios reported that Washington and Tehran have agreed to halt further attacks and restart negotiations in Qatar on Tuesday. Weather conditions also lent support to gas prices, with a heatwave sweeping across Europe driving up gas demand from power producers to meet higher cooling needs.