European natural gas futures extended their rally, rising more than 6% and nearing €49 per megawatt hour, as renewed geopolitical tensions stoked concerns over global energy supplies. Prices were bolstered by reports that Iran plans to halt back-channel communications with the United States in protest against Israel’s intensifying military campaign in Lebanon. Tehran accused Washington of sending mixed signals and stalling negotiations, while Foreign Ministry spokesperson Esmail Baghaei stressed that Iran was still dealing with the US, but only with “distrust.”
President Donald Trump, meanwhile, insisted that talks over an interim peace agreement would “work out well,” despite fresh clashes near the Strait of Hormuz. The key shipping lane has been largely closed for three months, amplifying worries about liquefied natural gas (LNG) shipments and Europe’s capacity to rebuild gas stocks ahead of the winter heating season. European storage sites are currently about 38% full, significantly below the five-year seasonal average of just over 50%.
