Hormuz Uncertainty Sends European Gas Prices Soaring

European natural gas prices surged by around 8% on Monday, touching nearly $70 per megawatt-hour due to uncertainty over the Strait of Hormuz's shipping normalization.

The benchmark Dutch TTF futures rose to almost $70 per megawatt-hour as of 1345GMT after recovering most of last week's losses, according to market data.

Iran and Oman were unable to reach a final agreement over the weekend after Tehran renewed its list of demands for Washington as conditions for fully reopening the strategic waterway. Although Iran stated that a deal was close, it emphasized that this would not immediately result in the strait's reopening and ruled out direct negotiations with the US.

The ongoing uncertainty has raised concerns that disruptions to liquefied natural gas shipments through the key route could persist, further delaying cargoes from major exporters such as Qatar. The delays have tightened global gas supplies, increased competition between European and Asian buyers for available LNG cargoes, and complicated Europe's efforts to replenish storage facilities ahead of winter.