European natural gas prices rose above €62 per MWh on Monday, reaching a new three-week high as disruptions to LNG supplies from the Gulf persisted amid stalled US–Iran negotiations. Renewed Israeli strikes on Tehran-backed Hezbollah in Lebanon, combined with fresh US threats of additional sanctions on Iran, have further dimmed hopes for a near-term agreement to fully reopen the Strait of Hormuz. Shipping traffic through the vital chokepoint has dropped sharply following recent attacks on vessels, underscoring elevated security risks.
In Europe, worries over gas inventories are intensifying. Storage levels remain below historical norms and are trailing the pace required to comfortably hit pre-winter targets. Efforts to replenish stocks are also being constrained by heatwaves across Southern and Central Europe, which have driven up demand for gas-fired power generation and diverted supplies away from storage.
