07.08.202601:34:00UTC+00European Natural Gas Extends Advance

European natural gas prices rose above €58 per MWh on Friday, building on gains from the previous session as mounting tensions in the Strait of Hormuz deepened uncertainty over the resumption of LNG shipments from the Persian Gulf. Iranian state media reported that naval forces had carried out an operation against “hostile targets” near the strait after explosions were heard on Qeshm Island. At the same time, Tehran is reportedly seeking to restrict the transit of US and Israeli vessels through the waterway under a proposed agreement with Oman, and is demanding compensation from countries it deems hostile before allowing their passage. Following these reports, European gas prices erased most of the losses posted earlier in the week. Ongoing disruptions to LNG exports from key suppliers such as Qatar continue to keep global supply balances tight, heightening competition with Asian buyers for available cargoes and complicating Europe’s efforts to build winter inventories.