Gas prices see modest increase as Trump sets Iran deadline
European natural gas prices recorded a modest rise following heightened threats from US President Donald Trump, who warned of potential destruction of critical Iranian infrastructure if his conditions for ending the conflict are not met by Tuesday’s deadline.
Reference contracts increased by up to 3.1%, after already climbing more than 55% since the start of the conflict.
Dutch contracts mark steady gains
Front-month futures in the Netherlands, a benchmark for the European gas market, rose 1.5% to €50.80 per megawatt-hour at 08:21 CET in Amsterdam.
Trump stated that the US military could destroy “every bridge in Iran by midnight tomorrow” if no agreement is reached by 20:00 Eastern Time on Tuesday. He added that energy facilities would become “burning, exploding, and unusable.”
Strait of Hormuz navigation remains key
The president also stressed that free navigation through the Strait of Hormuz is a key term for any deal, calling its reopening a “top priority.” Iran has warned it will retaliate against such attacks, potentially targeting energy infrastructure in the Persian Gulf, which could further tighten global energy supply.
Winter supply concerns for Europe
For the European gas market, prolonged disruption could hinder replenishment of reserves, currently just above 28%, ahead of next winter. Although most Middle Eastern supplies usually head to Asia, ongoing regional tensions may intensify competition for limited global liquefied natural gas (LNG) volumes.
Traders note that Iran has not allowed any LNG tankers to pass through the Strait of Hormuz during the weeks of conflict, increasing the risk of worsening international shortages. Maritime traffic in the area has dropped sharply, with only a limited number of tankers passing, usually with Tehran’s permission, while roughly one-fifth of global LNG supply remains off the market.
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