European natural gas prices extended their rally on Tuesday, climbing above €62 per MWh, as hopes dimmed for a Middle East peace agreement that might lead to the reopening of the Strait of Hormuz. President Trump signaled he was in no hurry to resolve the conflict and warned of possible military action against Oman if it impeded US efforts to reach a deal with Iran. Meanwhile, negotiations between Iranian and Omani officials over an interim framework to manage shipping through the strait have so far produced no tangible outcome.
The ongoing maritime blockade continues to delay LNG cargoes from Qatar, tightening the supply of gas available to Europe. At the same time, severe heatwaves across parts of the continent are driving up gas-fired power generation to meet surging air-conditioning demand. Together, these dynamics are slowing the pace of storage injections and putting additional strain on European gas inventories ahead of the winter heating season.
