European natural gas futures rose more than 4% to €52.30 per megawatt-hour on Tuesday, after US President Donald Trump escalated his threats against Iran ahead of an 8 p.m. Eastern Time deadline for reopening the Strait of Hormuz. Trump warned that US forces could “destroy every bridge in Iran by midnight tomorrow” and leave power plants “burning, exploding, and never to be used again.” He underscored that freedom of navigation through the Strait must be ensured, calling its reopening “a very big priority.”
European gas markets, with storage levels now just above 28% of capacity, are under strain amid the risk of prolonged supply disruptions. Although most Middle Eastern LNG cargoes typically go to Asia, ongoing restrictions could intensify competition for the limited global supply. Traders note that Iran has yet to allow any LNG carriers to transit the Strait since the war began, severely curtailing traffic and sidelining roughly one-fifth of global LNG output, which has driven sharp price increases across Europe.
