European natural gas futures rose to €56.2 per MWh on Friday, extending the previous session’s rally amid ongoing uncertainty over any de-escalation of the Middle East conflict. President Trump postponed by 10 days his deadline for Iran to agree to a ceasefire, stating that talks were progressing, even as Iran rejected the US peace proposal and denied that any negotiations were taking place.
The closure of the Strait of Hormuz has forced energy cargoes to be rerouted, sharply curtailing LNG supply. At the same time, Qatar’s largest LNG facility remains offline, with repairs expected to take three to five years. Europe’s gas storage levels are critically low at about 28%, leaving the region increasingly exposed as competition with Asia for LNG cargoes intensifies. Analysts warn that, without a resumption of LNG shipments, energy shortages could begin to emerge within weeks.
