Hormuz Uncertainty Drives European Gas Prices Above €56 per MWh

European natural gas prices rose above €56 per MWh on Monday, recouping part of the losses from the previous week. The increase is attributed to uncertainty over the normalization of shipping through the Strait of Hormuz.

The Iranian government has not yet reached a final agreement with Oman regarding the reopening of the strategic waterway. Despite Tehran's claims that a deal is close, they have cautioned that this does not necessarily mean the strait will reopen imminently. Iran continues to demand concessions from Washington as conditions for a full reopening.

The ongoing delays in LNG shipments through the Strait of Hormuz are expected to persist, affecting global supply balances and competition with Asian buyers for available cargoes. This has hampered Europe's efforts to stockpile natural gas for winter.