European natural gas prices rose to €61.5 per MWh on Tuesday, extending the previous session’s gains, as prospects for a deal to reopen the Strait of Hormuz dimmed amid competing demands from the United States and Iran. On Monday, President Trump called on Iran to compensate for lives lost in regional conflicts, following Tehran’s demand for reparations over damage it says was caused by US and Israeli attacks. The impasse has lowered expectations of a swift agreement that would restore LNG shipments through the Persian Gulf.
The continued disruption has tightened global LNG supply, intensifying competition with Asian buyers and complicating Europe’s efforts to rebuild gas inventories ahead of winter. European storage facilities have recently dropped to their lowest seasonal levels since records began in 2009, deepening concerns about winter supply security. Traders are also closely watching prolonged output cuts at Norway’s Ormen Lange field, Europe’s largest pipeline gas supplier, amid worries that further disruptions could exacerbate price volatility.
