European natural gas prices increased by approximately 8% on Monday, driven by uncertainty regarding the normalization of shipping through the Strait of Hormuz. Benchmark Dutch TTF futures approached nearly $70 per megawatt-hour as of 1345 GMT.
Benchmark Dutch TTF futures approached this level on Monday.
Iran and Oman did not reach a final agreement over the weekend regarding the reopening of the Strait of Hormuz. Tehran renewed a lengthy list of demands for Washington as conditions for fully reopening the strait, and indicated that a deal was close but cautioned that it would not result in the immediate reopening. Iran also ruled out direct negotiations with the US regarding the strait.
The Strait of Hormuz would not be safe if the US maintains its naval blockade.
Iranian Foreign Ministry Spokesperson Esmail Bakhaei said that the Strait of Hormuz would not be a safe passage if the US continues its current policy and naval blockade.
Uncertainty over the Strait of Hormuz has raised concerns that disruptions to liquefied natural gas (LNG) shipments could persist, delaying cargoes from major exporters such as Qatar. These delays have tightened global gas supplies and intensified competition between European and Asian buyers.
In the Dutch-based TTF virtual natural gas trading point, September futures opened at 56 euros per megawatt-hour, reached as high as 60.5 euros, and were trading at 59.5 euros at 17:10 TRT. The previous day, prices closed at 55.5 euros per megawatt-hour.
An expected increase in electricity demand due to a heatwave in Europe and natural gas storage levels at historic lows are also exerting upward pressure on prices.
