European natural gas prices held steady at €60.4 per MWh on Friday, remaining close to a more than two-week high, as concerns over the continent’s energy security ahead of winter persisted. On Thursday, the United States warned it could maintain its naval blockade of Iran indefinitely, intensifying pressure on Tehran after ceasefire talks stalled. The standoff has increased uncertainty in the Strait of Hormuz, with both sides issuing competing claims of control over the key shipping route.
The disruption has significantly delayed LNG shipments from Qatar, forcing European buyers to compete more aggressively with Asian importers for a limited pool of cargoes. As a result, rebuilding gas inventories ahead of the heating season is becoming both more difficult and more expensive. Storage sites are currently only 59% full, below historical norms. At the same time, heatwaves across Southern and Central Europe have driven up gas-fired power generation to meet surging cooling demand, diverting additional volumes away from storage. European gas prices are up more than 8% so far this week.
