Europe’s benchmark natural gas prices opened 3% higher on Monday following the weekend escalation over the Strait of Hormuz which threatens LNG shipments out of the Middle East again.
The August 2026 contract of the Dutch TTF Natural Gas Futures jumped by 3.35% to $59.51 (50.43 euros) per megawatt-hour (MWh) as of 6:15 a.m. Amsterdam time, rebounding to above the 50-euro threshold from a decline on Friday.
This weekend of reignited tensions between the U.S. and Iran, centered on the Strait of Hormuz and its navigability, led to a surge in crude oil and European natural gas prices as traffic once again slowed to a trickle and Qatar announced a halt to all maritime activities.
The LNG exports out of the Middle East had just started to recover as Qatar moved to boost production and shipments following the mid-June memorandum of understanding that the U.S. and Iran signed.
But this weekend’s renewed hostilities put an abrupt end to the recovery after the intensified tension prompted Qatar to take extraordinary measures to protect its ships.
“Qatar’s Transport Ministry issued an urgent advisory urging all maritime vessels to temporarily cease sailing and engaging in maritime activity until further notice,” maritime intelligence firm Windward said in a note on Sunday.
“This is the first blanket suspension of maritime activity by a Gulf state since the conflict began, with direct implications for LNG export flows from Ras Laffan,” Windward added.
A renewed disruption of Qatar’s LNG exports could tighten the global market just as Europe is scrambling for supply to refill gas storage sites ahead of the next winter.
Europe’s gas market remains exposed to the gas price volatility in the refilling season, which could prove more difficult and much more expensive to complete ahead of the next winter, as Asia now attracts the bulk of spot LNG supply.
By Tsvetana Paraskova for Oilprice.com
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