European natural gas prices remained above €68/MWh, their highest level since January 2023, as new US sanctions on Iran heightened concerns about further disruptions to energy supplies from the Persian Gulf. The US Treasury announced an expansion of secondary sanctions targeting Iran’s digital assets, technology, gold, aviation, and shipping sectors. It also imposed additional sanctions on 60 entities, individuals, and vessels alleged to be involved in generating oil revenues for Iran, procuring weapons, and supporting cyber operations.
These measures have compounded already elevated supply risks in Europe. The ongoing blockade of the Strait of Hormuz continues to restrict LNG shipments from Qatar, a key supplier. This disruption has coincided with stronger cooling demand driven by persistent heatwaves, complicating efforts to rebuild European gas inventories and intensifying concerns that the region may enter the winter heating season with inadequate supply.
