European natural gas prices held near multi‑year highs around €65.8/MWh on Monday, as investors awaited details of a new US plan to economically isolate Iran that could further disrupt Middle Eastern energy supplies. Treasury Secretary Bessent is due to hold a press conference later today and has warned of “the toughest sanctions in history” against Iran. This comes on the heels of President Trump’s threat last week to penalize countries that continue to trade with Tehran.
Iran has dismissed the US stance as a sign of desperation, insisting that the new measures will not succeed in subduing Tehran. In Europe, however, concerns over gas inventories are intensifying. Persistent tensions between Washington and Tehran have kept traffic through the Strait of Hormuz largely constrained, delaying Qatari LNG shipments to Europe. Coupled with a heatwave that has driven up electricity demand for cooling, the disruption has slowed the pace of storage refilling, leaving European gas inventories under increasing strain ahead of the winter season.
