Europe's Gas Prices Rise as Strait of Hormuz Disruptions Persist

The price of natural gas in Europe has increased as concerns over supply disruptions in the Strait of Hormuz continue to weigh on markets. Benchmark Dutch front-month futures rose by 2.9% to about €56.90 per megawatt-hour, while British wholesale contracts advanced 2.6% to £139.50 per therm.

The price rebound follows reports that Iran and Oman have nearly completed a draft agreement establishing new shipping channels through the Strait of Hormuz, but Tehran has indicated that the route would only fully reopen once further U.S. conditions are met.

The ongoing disruptions in the Strait of Hormuz are slowing summer liquefied natural gas (LNG) deliveries from major Middle Eastern producers, including Qatar, which is complicating Europe's efforts to secure enough fuel ahead of the winter heating season and to rebuild a robust storage buffer.