Iran Sanctions Threaten Europe's Winter Gas Supplies
European natural gas prices have surged to their highest level since January 2023, reaching €67.5/MWh, an increase of over 2%.
The sharp rise comes as investors await details on a US plan to economically isolate Iran, which could further disrupt energy supplies from the Middle East.
Treasury Secretary Bessent is set to hold a press conference later today and has threatened to impose 'the toughest sanctions in history' on Iran.
President Trump had previously warned that countries continuing to trade with Tehran would face sanctions, prompting Iran's dismissal of these threats as signs of desperation.
The ongoing tensions between the US and Iran have kept the Strait of Hormuz largely closed, delaying Qatari LNG deliveries to Europe.
This has combined with heatwave-driven cooling demand to slow inventory replenishment, putting pressure on European storage levels ahead of winter.