Hormuz Disruptions Keep European Gas Prices Elevated

European natural gas prices have recovered from their three-week low as concerns over supplies persist. The market has been supported by lingering fears about gas deliveries, despite a temporary easing of risk premiums after Iran and Oman agreed on a shipping route through the Strait of Hormuz.

LNG shipments through the key waterway continue to be disrupted, causing delays in summer cargoes from major exporters like Qatar. This has complicated Europe's efforts to stockpile natural gas for winter, while strong competition from Asian buyers has further reduced LNG availability.

Unseasonably hot weather across central and southern Europe has also increased electricity demand for air conditioning, adding to market pressures.