European Gas Market Sees Volatility Amid Ongoing Hormuz Disruptions
The European natural gas market is watching closely for further developments in efforts to revive shipping through the Strait of Hormuz. Benchmark futures rose as traders awaited next steps, amid signs that Iran and the US remained far apart on a new ceasefire deal or the reopening of the strait.
Tehran has stuck to its proposal, which President Donald Trump rejected earlier. Trump indicated that negotiations could resume this week, with mediators meeting Iranian officials on Monday. Qatar extended force majeure on liquefied natural gas shipments to Asia and Europe by another month due to continued disruptions in the waterway.
The prolonged disruption is setting the stage for intense competition among global buyers of the fuel, as around a fifth of the world's LNG used to transit through Hormuz. The European Union warned its member states about a potential energy price crisis, asking them to consider measures to cut demand and continue filling storage sites.
European gas prices fluctuated sharply last week due to mixed signals on efforts to revive flows through Hormuz. A fragile ceasefire collapsed in mid-June after negotiators explored a deal to reopen the waterway and lift Washington's blockade of Iranian ports.