European Natural Gas Prices Surge Amid Escalating Iran-US Tensions

European natural gas prices rose by more than 4% on September 24 after Iranian President Masoud Pezeshkian reiterated the widening rift with Washington, dampening hopes for an early return to normal energy flows through the Strait of Hormuz.

Pezeshkian told the United Nations General Assembly that Tehran would not allow freedom of navigation through the Strait of Hormuz as long as the US sanctions and blockade remained in place, dashing initial signs of diplomatic progress earlier in the week.

Natural gas futures jumped more than 4%, before paring gains slightly, after they fell in the previous session amid sharp swings this week as traders weighed geopolitical developments against Europe's efforts to replenish gas stocks ahead of winter.

Although there are indications of more oil shipments passing through the strait, liquefied natural gas flows remain limited due to their reliance on specialized tankers and greater exposure to security risks in the vital waterway.