European natural gas futures climbed above €41 per megawatt-hour, nearing their highest level since early April, amid rising fears that Iran-Israel conflict could disrupt supplies. Tensions remain elevated as traders await Tehran’s response after the US struck Iranian nuclear sites over the weekend. About 20% of the world’s LNG passes through the strait, and fears are growing that Iran could target tankers in the area.
Concerns are mounting that Iran may retaliate by targeting vessels in the region. Iran’s Foreign Minister Abbas Araghchi warned of “all options” being on the table, while Tehran promised “everlasting consequences” for the strikes. Meanwhile, Israel has continued its attacks, hitting military sites across Iran. At the same time, Europe is facing hotter-than-usual weather, which is driving up demand for natural gas used in air conditioning. Forecasts suggest above-average temperatures will continue, adding further pressure to gas prices.
