European natural gas prices climbed above €60 per MWh on Tuesday, reaching a new four-month high, as military tensions between the US and Iran escalated and prospects for diplomatic talks dimmed. President Donald Trump claimed that Iran “desperately wants to meet,” but said Washington is not interested in negotiations, while Tehran publicly rejected his assertions. Trump also warned of retaliation if Iran-backed Houthi rebels interfere with shipping in the Red Sea and renewed threats to strike Pickaxe Mountain, a site suspected of housing Iranian nuclear facilities.
The rising tensions have disrupted tanker movements through the Strait of Hormuz and reduced LNG export flows from the Gulf, heightening fears of tighter global gas supplies. Europe is currently refilling its storage sites ahead of the heating season, and lower LNG availability from the Gulf could force the region into fiercer—and more expensive—competition with Asian buyers for spot cargoes.
